\.i\f\t    :.' 


''\\\ 


^^^^^^^^^^^^^^^H| ) 

J  t  «  «  1  r  > 

"1 

•►"'"'^^tj. 


GIFT   OF 


The  West  the  Best 

—  and  — 

California   the   Best   of   the   West 


A  Story  of  Some  of  the  Principal  Features  in  the 
Business  Life  of  the  Golden  State 


BY  BENJ.  C.  WRIGHT 

Author   of   "Banking  in   California   1849-1910"   and 
"San  Francisco's  Ocean  Trade — Past  and  Future." 


Copyrighted  in  1913,  by  Benj.  C.  Wright. 
J,    ,  >'  J  i    >   -. 


■>   '  .   • 


A.  CARLISLE  &  CO. 

San  Fkancisco 

1913 


.vV 


*     •    • 


*    *•   .'  • 


•         •   .    •         «      w 


•     .  ••• 


INDEX. 


PAGE 

The  West  the  Best  and  California  the  Best  of  the  West: 

General    Remarks    3 

Mining  in  California  and  Other  States: 

Pioneer  Times    9 

Urgent  Need  Providentially  Supplied  9 

Treasure  Vaults  Opened  11 

Effect  on  the  World's  Gold 13 

Nevada   Opens   Rich   Mines 14 

Belcher  and  Crown  Bonanza 16 

Other  Comstock   Mines   19 

Con.  Virginia  Bonanza  22 

Dividends  from  Comstock  Lode 27 

Other  Mining  Camps  in  Nevada 27 

Goldfield  and  Tonopah  Mines 29 

Californians  in  Other  Mining  Districts 32 

Rank  of  Gold   States 33 

Mining  in  Other  Pacific   States 37 

Good  Dividend  Mines  in  California 47 

Dredge   Mining   in   California 51 

Gold  Product  and  Coinage  54 

States  Credited   for  Precious   Metals 57 

Complete  Returns  Difficult 64 

Total  Product  American  Gold  and  Silver 64 

California  as  a  Quicksilver  State 67 

California  Copper  Product 74 

California  Borax  Product 78 

California   Cement   Product ." 79 

California  Leads  in  Earth  Oil  Product 81 

Soil  and  Other  Products  of  California: 101 

Some  California  Soil  Products 101 

California  Wool  and   Hides 103 

Wheat  Crops  and  Exports 105 

Destinations  of  Flour  Exports 107 

Destinations  of  Wheat  Exports 110 

Large  Producer  of  High  Grade  Barley 113 

Other  Soil  Crops  of  the  State 116 

California  the  Leading  Fruit  State 117 

First  Beet  Sugar  State 125 

Hop  Culture  in  California 127 

Movements  in  California  Produce 129 

The  Lumber  Industry  130 

Ocean  Commerce  of  San  Francisco: 133 

California's  Part  in  the  World's  Commerce 133 

Expansion   of  Export   Trade 136 

Imports,   Duties  and   Exports 143 

Sources  of  San  Francisco  Imports 146 

Destinations  of  Produce  Exports 147 


257060 


ii  Index. 

PAGE 

Gold  and  Silver  Bullion  and  Coin  Movements: 149 

Large  Exports  of  Precious  Metals 149 

Destinations  of  Treasure  Shipments 153 

Gold  from  Australia  and  Japan 155 

Panama  Steamers  as  Carriers  of  Gold 157 

Descriptions  of  Specie  Exports 159 

Gold  in  the  Mails 160 

Twenty  Millions  Gold  in  One  Shipment 161 

Three  Hundred  Millions  Sent  to  Denver  Mint 163 

Manufactubes,  Teade  and  Tkanspoktation  : 164 

California    Manufactures    164 

The  Mercantile  Business  - 167 

Transportation   Service  170 

Real  Estate  Operations  in  San  Francisco: 173 

Sales,  Mortgages  and  Releases 177 

Municipal  Indebtedness  180 

Assessment  Rolls  and  Taxes  182 

Fibe  Undervfeiting  in  California: 183 

First  Fire  Insurance  Company  and  Still  Here 185 

First  Eastern  Fire  Insurance  Companies  187 

Insurance  Rates  in  the  Early  Years 189 

First  Mutual  Insurance  Company 190 

First  Joint  Stock  Insurance  Companies 190 

Twenty-five  Locals  in  Thirty  Years 192 

Insurance  Combination  and  Supervision 194 

Heavy  Fire  Losses  195 

Big  Chicago  Fire  Burns  Out  Three  Locals 196 

Only  Strictly  Marine  Company  Retires 199 

New  Companies  and  Retirements  in  1880-9 200 

Union  Sells  to  Alliance  at  Good  Figure 202 

California  Oldest  Local  203 

County  Mutual   Fire   Insurance   Companies 208 

Rates  of  Fire  Losses  to  Premiums 208 

Losses  by  First  Five  Big  Fires 209 

The  Big  Fire  of  the  Century  and  Country 210 

How  the  California  and  Fireman's  Fund  Met  It 211 

The  Banking  Business  in  California: 213 

OflBcial  Supervision — Cost  under  Commission  214 

New  Form — Increased  Cost  214 

Departmental    Banking   215 

First  General   Bank   Statement  217 

National  Bank  System  Introduced  218 

Banks  under  State  and  National  Authority 219 

San  Francisco's  Prominence  in  Banking 220 


The   West   the   Best 

—  and  — 

California  the  Best  of  the  West 


General  Remarks. 

That  the  western  half  of  the  land  area  of  the  United 
States  is  the  best  half,  is  a  proposition  that  needs  little 
argument  to  establish,  if  one  is  willing  to  eliminate  from 
the  consideration  wealth,  population  and  political  powers. 
In  these  three  factors  and  a  few  of  minor  importance  the 
advantage  lies  with  the  eastern  half  of  the  country,  be- 
cause, as  a  rule,  longer  settled. 

A  plumb  line  north  to  south  from  the  east  boundary  line 
of  North  Dakota  fairly  divides  the  territory  of  the  United 
States  between  what  may  be  termed  the  eastern  and  west- 
ern halves  of  the  country. 

East  of  that  imaginary  line  are  31  States,  while  west  of 
it  there  are  17  States  and  the  Territory  of  Alaska. 

The  land  area  of  the  48  States  comprises  2,973,830 
square  miles,  according  to  the  Bureau  of  Statistics.  The 
31  States  on  the  east  of  the  above  dividing  line  have  been 
given  1,119,155  square  miles  of  this  area,  while  the  17 
States  on  the  west  of  that  line  possess  1,854,666  square 
miles  of  land  area. 

The  17  Western  States  therefore  have  the  largest  half 
of  the  land  area  of  the  country ;  and  as  most  of  the  wealth 
of  the  country,  in  the  last  analysis,  can  be  traced  back  to 
the  earth,  the  future  of  the  Western  States,  if  not  the 
present,  places  them  in  the  lead.  This  large  difference  in 
land  area  is  an  important  asset  in  the  future  wealth,  popu- 
lation and  political  powers  of  the  Western  States. 


•        •     • 

.  •    •   •. 


4  The  West  the  Best  and  California  the  Best  of  the  West. 

All  these  17  States  have  been  organized  in  the  last  67 
years.  Texas  headed  the  list,  having  been  admitted  on 
December  29,  1845,  with  262,400  square  miles  of  land  area, 
the  largest  in  the  country.  The  combined  area  of  the 
largest  five  of  the  original  thirteen  States  is  only  270,700 
square  miles. 

As  the  territory  of  the  United  States  expanded,  the 
people  were  more  generous  in  the  establishment  of  State 
boundaries,  and  therefore  seven  of  the  States  in  the  west- 
ern group  have  a  land  area  in  excess  of  100,000  square 
miles.  California  is  second  in  this  list  of  large  States,  with 
a  land  area  of  155,652  square  miles,  equal  to  the  combined 
area  of  the  largest  three  of  the  original  States. 

According  to  the  last  census,  the  population  of  the 
United  States,  exclusive  of  Alaska  and  the  District  of 
Columbia,  was  91,641,000,  an  increase  of  a  little  over  21 
per  cent  compared  with  the  previous  census. 

During  the  same  decade  the  population  of  the  31  States 
in  the  eastern  half  of  the  country  increased  IdYo  per  cent, 
while  that  of  the  17  States  in  the  western  half  increased 
over  47  per  cent. 

Confining  the  comparison  to  California,  Oregon,  Wash- 
ington, and  the  ten  adjoining  States,  the  combined  popu- 
lation of  the  13  States  shows  an  increase  of  over  50  per 
cent  in  the  same  interval,  while  the  increase  in  the  13 
original  States,  which  include  two  of  the  largest  in  the 
country,  was  less  than  23  per  cent. 

These  comparisons  show  in  which  direction  the  popu- 
lation of  the  country  is  drifting.  The  people  are  going 
west,  as  they  were  advised  to  do  by  a  great  philosopher 
many  years  ago. 

The  western  half  of  the  country  is  growing  more  rap- 
idly than  the  eastern  half,  because  it  affords  more  room 
for  the  people  and  better  opportunities  for  advancement. 


The  West  the  Best  and  California  the  Best  of  the  West.  5 

It  was  ascertained  in  the  last  census  that  there  was 
an  average  of  31  persons  to  every  square  mile  in  the  48 
States.  In  the  31  States  in  the  eastern  half  the  average 
was  64,  while  in  the  17  States  in  the  western  half  it  was 
only  9.  There  is  plenty  of  room  here  and  a  cordial  wel- 
come for  all  who  will  come,  and  they  are  coming  in  increas- 
ing numbers  from  year  to  year. 

The  commerce  of  the  leading  four  ports  on  the  Atlantic 
compared  with  the  leading  four  ports  on  the  Pacific  for  the 
fiscal  years  ending  June  30,  1911,  and  June  30,  1901,  shows 
that  the  Pacific  ports  are  making  the  greatest  gains.  In 
the  line  of  imports,  there  was  a  gain  of  140  per  cent  in 
that  decade  in  the  aggregate  of  the  Pacific  ports,  against 
67  per  cent  in  the  Atlantic  ports.  In  the  line  of  exports 
to  foreign  countries,  the  Pacific  ports  show  a  gain  of  30 
per  cent,  against  16  per  cent  for  the  Atlantic  ports. 

While  the  matter  of  bank  clearings  is  not  so  well  devel- 
oped in  the  western  half  as  in  the  eastern  half  of  the 
country,  because  of  the  later  settlement  of  the  former  sec- 
tion, the  aggregate  increase  in  these  clearings  in  the  last 
ten  years  shows  a  large  percentage  of  gain  in  favor  of  the 
western  cities. 

Nearlj^  all  of  the  gold  and  silver  produced  in  the  United 
States  has  come  from  the  17  States  in  the  western  half  of 
the  country.  Michigan  was  the  first  to  open  up  the  copper 
deposits,  and  for  many  years  held  the  lead  in  the  produc- 
tion of  that  metal.  A  few  years  ago  Montana  supplanted 
Michigan  in  that  industry.  Since  then  Arizona  has  come 
to  the  front  as  the  largest  producer  of  copper.  These 
western  States  are  also  large  producers  of  lead  and  a 
variety  of  other  metals.  California  has  the  unique  distinc- 
tion of  practically  controlling  the  quicksilver  product  of 
the  country,  as  well  as  the  largest  producer  of  mineral  oil. 

The  great  forests  of  the  country  lie  in  the  western  half, 


6  The  West  the  Best  and  California  the  Best  of  the  West. 

and  the  Pacific  Coast  States  are  well  supplied  in  this  par- 
ticular. The  redwood  trees  of  California  and  the  fir  trees 
of  Oregon  and  Washington  have  acquired  an  international 
reputation. 

There  is  no  rival  to  the  salmon  fisheries  of  the  Pacific 
Coast  in  any  part  of  the  world,  and  the  value  of  this  indus- 
try goes  into  the  millions  annually. 

The  soils  and  climate  in  these  western  States  are  capable 
of  producing  nearly  every  variety  of  vegetable  growth 
known  to  the  world,  and  they  are  already  doing  it  on  a 
steadily  increasing  scale.  In  many  instances,  the  yields  are 
of  the  most  surprising  nature,  both  as  to  quality  and 
quantity. 

More  work  with  less  fatigue  can  be  performed  on  the 
Pacific  Coast  in  a  year  than  in  any  other  part  of  the 
country. 

It  is  in  this  section  of  the  country  where  they  have  the 
longest  days  and  the  shortest  nights  and  the  longest  nights 
and  the  shortest  days  in  the  United  States. 

It  is  in  this  section  where  fields  of  ice  may  be  observed 
in  midsummer  and  fields  of  flowers  in  midwinter. 

The  tallest  mountains  and  the  loveliest  valleys  are  in 
the  West.  Some  of  these  mountains  are  snowcapped  the 
year  round,  and  are  objects  worth  beholding.  Mount  Rai- 
nier in  Washington  on  a  hot  summer  day  imprints  a  photo- 
graph on  the  memory  of  the  beholder  that  can  never  be 
effaced. 

The  West  claims  the  largest  ocean  in  the  world.  Puget 
Sound  is  a  body  of  water  worth  going  miles  to  see.  Colum- 
bia River,  in  Oregon,  is  grand  and  majestic.  The  Bay  of 
San  Francisco  is  without  a  rival. 

The  Grand  Canon  in  Arizona,  the  Yosemite  Falls  in 
California,  the  great  Salt  Lake  in  Utah,  and  the  Yellow- 
stone Park  in  Wyoming  are  four  of  the  many  objects  of 


The  West  the  Best  and  California  the  Best  of  the  West.  7 

paramount  interest  to  the  globe  tourists,  and  to  all  others 
who  admire  the  wonders  of  nature. 

Some  of  the  fastest  horses  the  world  has  known  were 
bred  in  California,  as  well  as  the  finest  cattle,  sheep  and 
other  live  stock. 

As  for  the  inhabitants  in  the  western  half  of  the 
country  they  represent  a  good  average  at  least  of  the 
country's  population,  and  include  some  of  the  finest  types 
of  men,  women  and  children  to  be  found  in  any  part  of 
the  world. 

The  foregoing  comprise  only  a  very  few  of  the  more 
prominent  characteristics  of  the  17  States  in  the  western 
half  of  the  country.  Even  a  bare  enumeration  of  the  un- 
mentioned  ones  would  make  a  long  story. 

While  Arizona  leads  all  other  States  in  the  production 
of  copper,  Texas  is  the  largest  cotton  producing  State. 
California  is  unique  in  the  number  of  products  in  which 
it  stands  at  the  head,  not  only  in  the  western  half,  but  in 
the  whole  country. 

Thus  far  nothing  has  been  said  about  the  noncontiguous 
American  territory  in  the  western  half  of  the  country. 

Many  people  in  the  United  States  thought  a  great  mis- 
take was  made  when  Alaska  was  purchased  in  1867  at  a 
cost  of  $7,200,000.  Since  then  it  has  added  hundreds  of 
millions  to  the  wealth  of  the  country,  and  there  are  no 
indications  of  any  exhaustion  of  its  resources. 

The  purchase  of  the  Hawaiian  Islands  by  the  United 
States  in  1898  was  deprecated  in  certain  quarters,  but  the 
acquisition  is  now  regarded  as  indispensable.  The  develop- 
ment of  that  Territory  under  American  rule  has  been  phe- 
nomenal. 

The  control  of  the  Philippine  Islands  in  1899  met  with 
much  opposition  from  a  certain  class,  who  even  now  advo- 
cate  a  relinquishment   of  that  trust.     Such   control,   how- 


8  The  West  the  Best  and  California  the  Best  of  the  West. 

ever,  has  resulted  in  much  good  all  round,  and  it  would  be 
a  grave  mistake  to  surrender  American  jurisdiction  for 
some  years  to  come.  The  improved  conditions  of  these 
islands  under  American  supervision  fully  justify  such 
retention. 

California  has  been  often  compared  to  Canaan,  the 
promised  land  of  the  Israelites.  There  are  many  features 
of  resemblance  between  the  two  in  the  adaptability  of  the 
soil  and  climate  to  an  extensive  variety  of  products.  In 
the  division  of  the  land  of  promise  among  the  twelve 
tribes,  the  westerly  line  of  one  of  the  number  was  to  be 
the  great  sea,  meaning  the  Mediterranean.  It  will  be  noted 
that  the  westerly  border  line  of  California  is  the  great  sea, 
the  greatest  in  all  the  world. 

California  is  eminently  favored  in  having  the  longest 
ocean  coast  line  of  any  State  in  the  country,  which  exceeds 
700  miles.  Along  this  coast  line  are  numerous  loading 
ports,  available  the  year  around,  some  of  which  can  accom- 
modate the  largest  vessels  afloat,  both  for  loading  and  un- 
loading cargoes.  Now  that  most  of  the  vessels  in  the 
Pacific  Coast  trade  are  under  steam,  the  water  transporta- 
tion, domestic  and  foreign,  add  materially  to  the  business 
and  comfort  of  all  sections. 

Washington  claims  a  coast  line  of  1860  miles,  but  of 
this  total  1600  miles  is  credited  to  Puget  Sound,  including 
its  indentations. 

California  has  more  licensed  automobiles  than  any  other 
State,  except  New  York,  and,  in  proportion  to  population, 
many  more  than  that  State.  Automobilists  consider  Cali- 
fornia the  Paradise  of  the  country. 


The  West  the  Best  and  California  the  Best  of  the  West. 

MINING  IN  CALIFORNIA  AND  OTHER  STATES 


Pioneer  Times. 

When  California  was  proclaimed  American  territory  by 
military  authority  in  July,  1846,  few  realized  the  commer- 
cial value  of  the  victory  which  had  been  won  from  Mexico. 
There  were  comparatively  few  English  speaking  people  in 
the  section  at  that  time,  though  scores  of  wanderers  had 
drifted  in  from  time  to  time,  some  of  them  as  early  as  1810. 

Most  of  these  had  located  on  Yerba  Buena,  which  was 
renamed  San  Francisco  in  January,  1847.  At  that  time 
there  were  not  a  dozen  stores  in  the  embryo  metropolis  of 
the  Pacific  Coast.  But  there  was  a  hopeful  feeling  in  the 
hearts  of  those  conducting  the  different  lines  of  business. 
That  has  always  been  true  of  pioneers  in  new  sections  of 
the  country  and  in  new  fields  of  industry. 

These  pioneer  merchants  did  not  have  to  wait  long  for 
returns,  though  some  of  them  had  been  engaged  in  a  primi- 
tive way  for  upwards  of  a  decade.  When  the  tide  of 
prosperity  set  in  it  came  suddenly  and  from  an  entirely 
unexpected  source.  As  the  sun  rose  on  the  1st  of  January, 
1848,  no  one  had  the  slighest  idea  of  what  the  new  year 
had  in  store  for  them.  They  naturally  expected  there 
would  be  some  improvement  over  the  previous  year.  Had 
this  only  been  realized,  they  would  have  been  satisfied. 
Thus  far  they  had  made  som.e  progress  in  their  new 
environments,  and  that  was  sufficient  encouragement  to 
stimulate  patience  and  to  inspire  hope. 

Urgent  Need  Providentially  Supplied. 

Before  the  end  of  the  first  month  of  the  new  year,  there 
was  a  report  that  gold  had  been  discovered  in  a  mill  race 
that  was  being  constructed  for  a  sawmill  at  Coloma,  near 


10  The  West  the  Best  and  California  the  Best  of  the  West. 

Sacramento.  The  discoverer  was  James  W.  Marshall,  an 
American,  in  the  employ  of  Captain  Sutter.  The  value  of 
the  discovery  was  at  first  questioned.  As  soon  as  tests 
were  made,  all  doubts  vanished,  and  excitement  over  the 
discovery  became  intense.  Had  the  facilities  for  communi- 
cating with  different  parts  of  the  country  and  of  the  world 
been  as  extensive  then  as  they  were  a  few  years  later,  the 
unprecedented  rush  for  California  would  have  commenced 
in  the  spring  of  1848  instead  of  nearly  a  year  later. 

The  discovery  of  gold  was  a  big  advertisement  to  this 
latest  addition  to  American  territory.  Up  to  that  time  the 
production  of  gold  in  the  United  States  had  been  confined 
to  a  small  area  on  the  Atlantic  side  and  to  a  very  limited 
amount  annually.  Prior  to  1848,  the  amount  of  gold  pro- 
duced in  the  United  States,  according  to  Government  re- 
ports, was  less  than  $25,000,000.  From  April  2,  1792,  to 
July  31,  1834,  the  product  was  $14,000,000.  From  the  last- 
named  date  to  December  31,  1844,  the  total  was  $7,500,000. 
In  the  following  two  years  the  product  was  $1,008,000  and 
$1,140,000  respectively.  In  1847,  the  year  immediately  pre- 
ceding the  gold  discovery  in  California,  the  yield  had 
dwindled  to  $889,000.  Thus  in  55  years,  the  product 
reached  the  liber^al  sum  of  $24,537,000 ! 

This  sum,  if  it  had  all  been  retained  in  the  country, 
would  have  been  equivalent  to  one  dollar  for  each  inhab- 
itant. There  is  no  complete  data  of  the  movement  of  gold 
to  and  from  the  country  for  1820  or  the  earlier  years. 
From  1820  to  the  close  of  1847,  it  is  known  that  the  amount 
of  gold  sent  abroad  was  much  larger  than  the  amount 
received,  and  therefore  the  stock  of  gold  in  the  country 
was  much  less  than  the  amount  reported  to  have  been 
produced  up  to  that  date. 

According  to  the  census  of  1850,  the  United  States  had 
a  population  of  23,192,000,  of  which  3,638,800  belonged  to 


The  West  the  Best  and  California  the  Best  of  the'iWest.  11 

the  colored  race.  These  people  must  have  been  endowed 
with  some  courage  and  a  good  deal  of  faith  to  undertake 
to  face  their  business  problems  with  a  gold  capital  of  not 
more  than  $20,000,000  of  domestic  production.  Of  course, 
foreign  supplies  were  available  when  the  balance  of  trade 
was  in  favor  of  the  country.  The  United  States  mints 
must  have  relied  upon  such  supplies  to  some  extent  in  order 
to  report  a  gold  coinage  of  $52,000,000  to  the  close  of  1846, 
though  the  customs  reports  fail  to  show  any  such  excess  of 
gold  imports  over  the  gold  exports.  It  is  probable  that 
foreign  gold  received  into  the  country  through  private 
channels  may  account  for  such  a  large  gold  coinage  prior 
to  1847,  when  the  total  domestic  gold  product  to  the  close 
of  1847  was  less  than  $25,000,000. 

Treasure  Vaults   Opened. 

The  discovery  of  gold  deposits  in  California  in  1848 
was  very  opportune.  It  was  more.  It  was  providential. 
It  makes  one  shudder  to  think  what  might  have  happened 
to  this  country  if  no  such  discovery  had  been  made  at  the 
time,  or  even  for  two  decades  later.  The  country  was  at 
peace  with  the  world  and  fairly  prosperous  in  1848,  and 
for  several  years  later.  There  was  some  agitation  over 
the  slavery  question  between  the  North  and  the  South, 
which  became  more  intense  and  general  as  the  years  passed 
by.  Anxiety  concerning  the  outcome  of  this  agitation  in- 
creased with  the  flight  of  time.  At  last  it  became  apparent 
that  this  difference  of  opinion  on  the  right  to  buy  and  sell 
human  beings,  the  purchasers  to  hold  them  as  chattels, 
would  some  day  end  in  serious  trouble. 

The  outbreak  came  early  in  1861  in  the  form  of  a  civil 
war  between  the  anti-slavery  and  pro-slavery  sections  of 
the  country.  This  was  continued  for  four  years,  at  a  great 
loss  of  life,  and  a  great  waste  of  money. 


A 


12  The  West  the  Best  and  California  the  Best  of  the  West. 

California  had  been  producing  liberal  supplies  of  gold 
for  thirteen  years  prior  to  the  inauguration  of  the  war.  It 
was  this  gold  and  that  produced  while  the  rebellion  was  in 
progress  that  formed  such  an  important  factor  in  sustain- 
ing the  credit  of  the  United  States  abroad  during  that  trying 
period.  It  was  the  country's  only  dependence  in  that  line 
of  support.  Even  with  this  substantial  aid,  the  United 
States  had  to  pay  well  for  foreign  financial  help. 

The  California  gold  discovery  also  had  an  important 
bearing  on  the  world's  gold  supply.  Up  to  that  event,  the 
gold  product  of  the  entire  world  from  1493  to  1848  was 
only  $3,085,437,000.  This  was  the  aggregate  contribution 
of  all  the  mines  of  the  world  during  that  interval  of  356 
years.  The  average  annual  product  for  that  period  was 
$8,667,000.  If  the  years  subsequent  to  1848  had  not  shown 
a  much  higher  annual  average  than  that,  the  world  would 
have  been  obliged  to  lean  much  heavier  on  credit  money 
than  it  does  at  present. 

The  finding  of  gold  in  California  in  such  liberal  quan- 
tity was  the  needed  stimulus  in  renewing  the  world-wide 
search  for  the  yellow  metal.  It  is  needless  to  say  that  these 
efforts  have  been  eminently  successful,  both  in  this  country 
and  in  other  lands.  About  forty  years  ago  an  eminent 
scientist  in  Europe  gave  it  as  his  opinion  that  the  produc- 
tion of  gold  had  reached  its  climax,  and  was  even  then  on 
the  wane.  Even  other  people,  with  much  less  reputation 
at  stake,  have  at  various  times  expressed  similar  opinions. 
Within  ten  years  after  California  had  begun  to  produce 
gold  there  were  those  who  proclaimed  that  the  supply  in 
that  State  was  exhausted;  and  some  of  these  were  so  sin- 
cere in  their  belief  that  they  left  the  State  in  search  of  new 
diggings  elsewhere.  Yet  now,  after  65  years  of  steady  gold 
production,  California  is  still  supplying  from  $15,000,000 
to  $20,000,000  in  gold  per  annum. 


*. 


The  West  the  Best  and  California  the  Best  of  the  West.  13 

Effect  on  the  World's  Gold. 

While  the  world's  gold  product  from  1493  to  1848  (a 
period  of  356  years)  was  $3,085,437,000,  or  an  average  of 
$8,667,000  per  annum,  the  world's  gold  product  from  1848 
to  1910  (a  period  of  63  years)  was  $10,760,788,600,  or  an 
average  of  $170,806,000  per  annum. 

In  other  words,  the  world  has  produced  more  than 
three  times  as  much  gold  in  the  last  63  years  as  it  did  in 
the  previous  356  years. 

This  comparison  has  much  significance.  For  the  heavy 
increase  in  the  gold  product  of  the  world  since  1848,  Cali- 
fornia is  justly  entitled  to  considerable  credit.  The  suc- 
cessful prosecution  of  the  industry  in  that  State  was  an 
impelling  motive  in  the  hunt  for  deposits  of  the  precious 
metals  in  this  country  and  elsewhere. 

When  the  primitive  methods  of  washing  gold  from  the 
river  beds  in  California  began  to  show  lessened  yield,  the 
mountains  were  sluiced  by  hydraulic  power  and  with  very 
satisfactory  results,  until  prohibited  because  of  the  alleged 
damage  to  rivers  and  other  streams  and  the  adjoining  lands 
by  the  debris  incident  to  that  form  of  mining. 

Quartz  mining  was  also  resorted  to  when  the  washing 
from  the  streams  began  to  fail  of  producing  the  usual  sup- 
ply of  the  yellow  metal.  Dredging  the  auriferous  gravel 
beds  with  powerful  machinery  was  also  introduced  with 
good  effect.  The  last-named  two  forms  of  mining  are  still 
maintained. 

As  late  as  1906  there  were  upwards  of  one  thousand  pro- 
ducing mines  in  California,  of  which  nearly  two-thirds  were 
placers  of  various  kinds,  the  other  being  quartz  mines.  The 
non-producing  claims  were  much  more  numerous.  Of  the 
gold  produced  for  that  year,  about  40  per  cent  was  from 
the  placer  mines.  The  dredging  machines  alone  furnished 
about    one-quarter    of    the    total    product.      This    form    of 


14  The  West  the  Best  and  California  the  Best  of  the  West. 

mining  has  of  late  years  been  carried  on  in  several  of  the 
northern  counties,  the  most  prolific  of  which  are  Butte, 
Yuba  and  Sacramento. 

Mining  prospectors  from  California  did  much  to  open 
up  deposits  of  the  precious  metals  in  adjoining  States  and 
Territories  both  to  the  north  and  to  the  south. 

Rumors  of  gold  discoveries  on  Fraser  River  in  British 
Columbia  attracted  from  15,000  to  20,000  gold  seekers  from 
San  Francisco  in  the  Spring  of  1858,  only  to  return  in  the 
Fall  of  the  same  year,  sadder  and  wiser  than  when  they 
left. 

In  the  following  year  there  was  a  considerable  exodus 
to  the  western  part  of  the  Territory  of  Utah,  since  known 
as  Nevada,  with  much  better  results.  Some  good  indica- 
tions in  that  section  were  found  in  the  Fall  of  that  year, 
and,  with  pans  and  rockers,  about  $30,000  in  gold  was 
cleaned  up  in  the  last  quarter  of  the  year. 

This  was  the  beginning  of  mining  in  Nevada,  which  has 
since  been  prosecuted  with  commendable  zeal  and,  in  the 
main,  with  satisfactory  results. 

Nevada  Opens  Rich  Mines. 

Three  small  quartz  mills  were  shipped  into  Nevada  from 
California  in  1860  resulting  in  a  bullion  output  of  $750,000, 
of  which  $550,000  was  gold.  One  of  these  mills  was  the 
property  of  the  Ophir  Company,  and  another  the  Central. 
In  the  following  two  years  the  value  of  the  gold  output 
was  larger  than  the  silver  product,  though  in  the  subse- 
quent years,  for  the  most  part,  it  was  less,  the  proportions 
being  about  45  per  cent  gold  to  55  per  cent  silver. 

The  Comstock  Lode,  in  Nevada,  where  these  operations 
were  inaugurated,  is  estimated  to  have  produced  from  1859 
to  1902,  both  years  inclusive,  $148,145,385  in  gold,  $204,- 
653,040  in  silver  and  $18,449,863  from  tailings,  making  a 


The  West  the  Best  and  California  the  Best  of  the  West.  15 

grand  total  of  $371,248,288.  Since  1902  several  more  mil- 
lions have  been  added  from  the  same  source,  and  the  work 
is  still  in  progress. 

It  would  be  difficult  to  duplicate  an  area  of  the  same 
size  as  that  covered  by  the  Comstoek  Lode  in  Storey- 
County,  Nevada,  that  has  furnished  the  world  with  a  value 
in  gold  and  silver  as  large  as  that  named  above  in  the  same 
number  of  years. 

Of  the  thirty  or  more  companies  operating  on  the  Com- 
stoek Lode  not  a  single  one  has  been  able  to  get  along 
without  calling  upon  stockholders  for  financial  aid.  A 
table  of  assessments  levied  to  the  close  of  1902  shows  a 
total  of  $80,101,000,  while  the  dividends  paid  in  the  same 
interval  were  $129,219,500.  These  dividends  came  from 
fifteen  mines,  including  $78,213,600  from  the  Con.  Virginia 
and  California  mines,  $27,300,200  from  the  Belcher  and 
Crown  Point  mines,  $4,460,000  from  Savage,  $3,848,400  from 
Gould  &  Curry,  $3,080,000  from  ChoUar  Potosi,  $2,208,000 
from  Yellow  Jacket,  $1,880,000  from  Hale  &  Norcross, 
$1,592,800  from  Ophir  and  $1,350,000  from  Kentuck. 

During  the  first  few  years,  the  leading  mines  on  the 
Comstoek  were  Ophir,  Gould  &  Curry,  Savage  and  Hale  & 
Norcross.  At  that  time  and  for  several  years  afterwards, 
sales  were  based  on  feet  in  the  claim  rather  than  on  shares 
in  the  capital  stock. 

Two  or  more  years  prior  to  the  discovery  of  good  ore 
bodies  in  the  Belcher  and  Crown  Point  mines  in  1871,  min- 
ing operations  on  the  Comstoek  Lode  had  not  been  very 
successful  and  some  of  those  most  closely  identified  with  the 
work  were  discouraged  over  the  meagre  returns  and  the 
large  demands  for  money  to  meet  payrolls  and  other  ex- 
penses. 

At  about  the  crucial  point  in  this  dull  period  an  effort 
was  made  to  turn  over  the  whole   business  to   a   foreign 


16  The  West  the  Best  and  California  the  Best  of  the  West. 

syndicate  for  about  the  market  value  of  tlie  claims  in  oper- 
ation, say  about  $5,000,000.  The  holders  considered  that 
they  would  do  well  if  they  could  effect  this  bargain  at  that 
figure. 

Had  the  Syndicate  accepted  the  offer  to  sell,  the  own- 
ers would  have  had  sincere  cause  for  regrets.  The  ore  body 
developed  in  the  Belcher  and  Crown  Point  mines  in  1871 
was  the  best  yet  uncovered  on  the  Lode,  and  put  new  life 
into  the  market  for  the  next  two  years  or  more. 

Upon  the  exhaustion  of  that  ore  body  the  outlook  again 
became  gloomy.  Some  thought  it  was  useless  to  expect  any 
further  favorable  development.  Even  those  most  closely 
allied  with  the  work  shared  these  pessimistic  views. 

Belcher  and  Crown  Bonanza. 

The  Belcher  and  Crown  Point  bonanza  had  greatly  en- 
hanced the  value  of  all  Comstock  shares,  and  when  that 
gave  out,  the  shrinkage  in  these  values  was  terrific. 

The  first  indications  of  a  body  of  good  ore  in  the  Belcher 
and  Crown  Point  mines  were  observed  in  the  closing  months 
of  1871.  According  to  the  San  Francisco  Weekly  Stock 
Circular  of  October  15,  1870,  the  Belcher  mine  had  paid  no 
dividends  up  to  that  time,  but  there  was  an  assessment 
pending  of  $2  per  share,  which  had  become  delinquent  on 
the  6th  of  that  month.  The  Belcher  mine  contained  1040 
feet,  which  at  that  time  was  divided  into  10,400  shares  of 
the  par  value  of  $100  each,  so  this  particular  assessment 
amounted  to  $20,800.  The  shares  were  then  quoted  at  $3.50 
asked  and  $3  bid.  The  bullion  product  of  the  mine  for 
1869  was  $18,312,  but  nothing  was  reported  for  1868. 
Shares  in  the  Belcher  mine  sold  at  $18  in  January,  1870, 
advancing  to  $35  in  the  follo-wdng  March  and  April,  then 
declining  to  $1  in  October,  closing  in  December  at  $6,  which 
of  course  included  the  assessment  of  $2  added  in  October. 


The  West  the  Best  and  California  the  Best  of  the  West.  17 

The  Crown  Point  mine  produced  bullion  to  the  value  of 
$1,086,200  in  1868,  but  only  $105,700  in  1869.  This  mine 
had  paid  some  dividends,  including  one  of  $5  per  share 
in  September,  1868.  That  was  the  last  dividend  up  to  their 
renewal  in  1872.  An  assessment  of  $3  per  share  became 
delinquent  on  the  mine  in  September,  1870.  The  mine  con- 
tained 800  feet,  divided  into  12,000  shares  of  the  par  value 
of  $250  per  share,  so  the  assessment  was  $36,000.  The 
shares  sold  as  high  as  $18  in  January,  1870,  and  $28  in 
the  following  March,  the  top  price  for  that  year.  In  the 
following  November  they  dropped  to  $1  per  share.  The 
improvement  noted  in  the  mine  at  about  that  time  sent  up 
the  price  to  $10  and  $18  in  December,  closing  at  $15  at  the 
end  of  that  month. 

The  developments  noted  in  the  Belcher  and  Crowii  Point 
mines  in  the  winter  of  1871  became  to  be  better  appreciated 
in  January,  1872,  and  for  the  first  six  months  of  that  year 
the  excitement  in  mining  shares  ran  very  high,  exceeding 
any  previous  craze  known  up  to  that  time.  The  volume 
of  business  increased  rapidly,  and  prices  went  up  by  leaps 
and  bounds.  The  movement  affected  the  shares  in  nearly 
every  mine  on  the  Comstock  Lode,  good,  bad  and  indif- 
ferent. It  was  argued  that  similar  discoveries  might  be 
found  in  other  sections  of  the  Lode.  At  any  rate,  it  was 
considered  a  safe  gamble  to  speculate  in  these  securities 
while  the  excitement  lasted. 

At  that  time  a  record  was  kept  of  the  value  of  the  sales 
made  in  the  San  Francisco  Stock  Board.  This  record  for 
the  first  six  months  of  1872  shows  sales  of  $17,779,000  in 
January,  $24,774,000  in  February,  $17,629,000  in  March, 
$36,761,000  in  April,  $18,747,000  in  May,  and  $9,000,000  in 
June,  or  a  grand  total  of  $124,690,000  for  the  six  months. 


18  The  West  the  Best  and  California  the  Best  of  the  West. 

against  $63,435,000  for  the  same  time  in  1871,  $28,637,000 
in  1870,  $42,502,000  in  1869,  and  $61,513,000  in  1868. 

During  the  first  six  months  of  1872,  the  Belcher  mine 
paid  $1,248,000  in  dividends  and  the  Crown  Point  $1,560,- 
000.  The  sales  of  mining  stocks  in  the  first  nine  months  of 
1872  amounted  to  about  $160,000,000  a  record  total  up  to 
that  time. 

The  bullion  product  of  seventeen  of  the  most  prominent 
mines  on  the  Comstock  Lode  in  1866  was  $11,732,000;  in 
1867  it  was  $13,626,000;  in  1868  it  was  $8,449,800,  and  in 
1869  it  was  $7,265,400.     It  was  still  much  less  in  1870. 

In  October,  1870,  the  market  value  of  all  the  shares  in 
seventeen  of  the  leading  mines  on  the  Comstock  Lode  was 
only  $4,923,000.  It  was  even  a  little  under  that  total  a 
year  earlier. 

Under  the  excitement  of  1872,  incident  to  the  discovered 
bonanza  in  the  Belcher  and  Crown  Point  mines,  these  same 
shares  were  inflated  to  a  value  of  many  millions  more  than 
they  were  considered  to  be  worth  in  October,  1870. 

There  is  an  interesting  story  concerning  the  operations 
in  the  Hale  &  Norcross  mine.  This  company  was  incor- 
porated in  March,  1861,  and  was  one  of  the  pioneer  com- 
panies to  operate  on  the  Comstock  Lode.  The  claim  con- 
tained 400  feet,  divided  into  800  shares  of  a  par  value  of 
$500  each,  making  a  capital  of  $400,000.  In  1867  the  capi- 
tal was  increased  to  $1,200,000  by  raising  the  par  value 
of  the  shares  from  $500  to  $1,500.  In  1868  the  shares  were 
increased  from  800  to  8,000,  while  the  value  was  reduced 
from  $1,500  to  $200,  making  a  capital  of  $1,600,000.  The 
first  recorded  sale  in  the  mine  was  in  October,  1862,  when 
one  foot  sold  at  $330,  equal  to  $16.50  per  share  as  the 
stock  was  apportioned  in  1870.  For  the  five  years  ending 
in  March,  1871,  the  mine  produced  180,920  tons  ore,  yield- 
ing $5,481,137,  of  which  $3,383,365  was  gold  and  $2,097,772 


The  West  the  Best  and  California  the  Best  of  the  West.  19 

was  silver.  The  first  dividend  was  paid  in  April,  1866,  and 
the  total  dividends  for  the  five  years  following  were  $1,518,- 
000.  No  dividend  was  paid  1868-69.  The  assessments  to 
March,  1871,  were  $610,000.  In  one  of  these  years,  when 
there  was  a  fight  for  control,  two  feet  of  the  mine  that 
gave  the  victory  to  one  of  the  factions  sold  for  $7,100  per 
foot,  giving  the  mine  a  nominal  value  of  $2,840,000.  As 
things  have  turned  out,  the  mine  was  not  worth  that,  or 
even  a  much  smaller  sum.  There  have  been  no  dividends 
from  the  mine  since  August,  1888,  while  the  total  amount 
paid  up  to  that  time  was  $1,888,000.  In  the  palmy  days 
of  the  mine  the  shares  brought  good  figures.  At  the  time 
when  the  first  dividend  was  paid,  the  shares  sold  at  about 
$50,  but  before  the  end  of  the  year  they  had  risen  to  $125. 
From  $115  per  share,  the  highest  price  in  1863,  the  stock 
sold  down  to  $6  per  share  in  1865.  The  highest  price  prior 
to  1871  was  $355  in  1868.  As  showing  the  variable  char- 
acter of  such  stocks,  $40  was  accepted  in  the  same  year. 

Other  Comstock  Mines. 

Many  interesting  facts  might  be  cited  about  several 
more  of  the  early  located  mines  on  the  Comstock  Lode, 
some  of  which  had  brief  seasons  of  prosperity,  while  most 
of  the  remainder  have  had  little  to  show  for  the  amount  of 
labor  and  money  expended  upon  them.  In  the  latter  list 
is  the  Bullion,  which  has  been  an  assessment  proposition 
from  the  start.  This,  however,  is  only  one  of  many  in  the 
same  category. 

Of  the  thirty  or  more  mines  operated  on  the  Lode  be- 
tween 1860  and  1870,  comparatively  few  ever  paid  a  divi- 
dend. 

The  Ophir  was  one  of  the  first  of  the  Comstock  mines 
to  take  rank  as  a  dividend  payer.  In  1870  32  corporations 
were   operating   on  the   Lode,   claiming  46,244,   lineal  feet 


20  The  West  the  Best  and  California  the  Best  of  the  West. 

and  having  a  nominal  capital  of  $55,131,600,  divided  into 
267,500  shares,  the  par  value  of  which  varied  from  $100  to 
$500.  Ophir  had  1,400  feet  and  a  capital  of  $5,040,000  in 
16,800  shares.  It  has  paid  $1,866,920  in  dividends  to  July, 
1912,  but  nearly  the  entire  amount  was  paid  prior  to  1867. 
The  mine  was  divided  many  years  ago,  the  Mexican  cor- 
poration taking  one  half. 

The  big  body  of  pay  ore  opened  up  in  the  Belcher  and 
Crown  Point  mines  at  the  close  of  1871  was  exhausted  in 
a  little  over  four  years,  but  during  that  interval  stock- 
holders fared  well.  The  Belcher  mine  paid  $412,200  in  divi- 
dends prior  to  1867,  and  $14,976,000  between  January,  1872, 
and  April,  1876,  making  a  total  of  $15,397,200  to  the  last- 
named  date.  This  was  the  largest  amount  paid  in  dividends 
by  any  of  the  earlier  Comstock  mines  up  to  that  time. 

The  Crown  Point  mine  was  a  good  second  in  the  same 
list.  Its  dividends  prior  to  1867  were  $239,000.  It  paid 
$264,000  in  the  first  five  months  of  1867,  and  $360,000  in  the 
five  months  ending  September  30,  1868.  There  were  no 
further  dividends  until  June,  1871,  when  $120,000  was  paid 
and  the  same  amount  in  each  of  the  three  following  months. 
The  dividends  were  resumed  in  January,  1872,  from  the 
new  body  of  rich  ore.  In  seven  months  of  that  year  the 
mine  paid  $1,860,000,  and  in  the  first  nine  months  of  the 
same  year  the  Belcher  paid  $2,184,000. 

The  payment  of  $4,044,000  in  dividends  by  these  two 
mines  in  a  single  calendar  year  was  the  best  record  that 
had  been  made  up  to  that  time,  and  stockholders  were 
quite  elated  over  the  returns. 

But  there  were  even  more  liberal  things  in  store  for 
them  in  the  following  two  years,  though  they  did  not  know  it  at 
the  time.  In  1873  the  Belcher  paid  $6,760,000,  and  the 
Crown  Point  $5,100,000,  and  in  1874  the  former  paid 
$5,304,000  and  the  latter  $3,400,000.     Those  two  years  were 


The  West  the  Best  and  California  the  Best  of  the  West.  21 

the  best  in  both  mines.  The  Crown  Point  paid  a  dividend 
of  $200,000  in  January,  1875,  making  a  grand  total  of  $11,- 
903,000.  In  the  same  month  the  Belcher  paid  $312,000  and 
in  the  first  four  months  of  1876  it  paid  $416,000.  Neither 
mine  has  paid  a  dividend  since. 

The  Savage  mine  paid  $1,332,000  in  dividends  prior  to 
1867.  In  1867  it  paid  $1,600,000,  together  with  $1,184,- 
000  in  1868  and  $344,000  in  the  first  five  months  of  1869, 
making  in  all  $4,460,000.    No  dividend  since  June,  1869. 

The  Gould  and  Curry  mine  paid  $3,800,400  in  dividends 
prior  to  1867,  but  only  one  of  $48,000  since.  The  last- 
named  was  paid  in  October,  1870,  making  $3,848,400  in  all. 
This  mine  was  quite  popular  in  the  early  sixties. 

The  Chollar-Potosi  began  paying  dividends  in  1867, 
when  $420,000  was  thus  disbursed.  It  paid  no  dividends  in 
the  following  year.  Dividends  were  resumed  in  June,  1869, 
after  an  interval  of  seventeen  months.  There  was  no  fur- 
ther interruption  in  these  monthly  disbursements  until 
March,  1872.  It  paid  $294,000  in  1869  and  $658,000  in 
1870.  The  best  dividend  year  in  its  history  was  1871,  when 
it  disbursed  $1,652,000  in  that  form.  In  January  and  Feb- 
ruary, 1872,  two  more  dividends  of  $28,000  each  were  paid, 
making  a  record  up  to  that  date  of  $3,080,000.  Subse- 
quently the  mine  was  divided  into  two  equal  parts,  one 
to  be  known  as  Chollar  and  the  other  as  Potosi.  There  has 
been  no  dividend  paid  from  this  property  since  February, 
1872. 

The  YelloAV  Jacket  mine  was  a  favorite  in  its  prime. 
Dividends  paid  prior  to  1867  amounted  to  $744,000,  while 
in  the  subsequent  years  down  to  August,  1871,  an  addi- 
tional sum  of  $1,464,000  was  paid  out  in  a  similar  way, 
making  a  grand  total  of  $2,208,000.  There  has  been  no 
other  dividend.  Pending  the  payment  of  one  of  its  divi- 
dends the  mine  sustained  much  damage  from  a  fire  in  the 


22  The  West  the  Best  and  California  the  Best  of  the  West, 

shaft.    The  pending  dividend  was  rescinded,  and  an  assess- 
ment levied. 

Prior  to  May,  1876,  seven  of  these  eight  pioneer  mines 
on  the  Comstoek  paid  $42,757,500  in  dividends.  The  Hale 
&  Norcross  mine  is  not  included  in  that  total,  because  its 
dividend  record  did  not  close  until  August,  1888.  How- 
ever, the  few  small  dividends  recently  paid  by  the  Ophir 
are  included. 

Outside  of  these  eight  mines,  there  were  some  dividends 
paid  by  others  in  the  same  location.  Kentuek  was  perhaps 
the  most  prominent  in  this  omitted  list.  This  claim  covered 
only  95  feet,  and,  with  three  exceptions,  was  the  smallest  of 
the  32  in  operation  on  the  Lode  in  1870.  It  had  a  very 
good  dividend  record,  having  paid  $1,095,000  from  1867  to 
February  1,  1870.  The  Imperial  mine  with  a  claim  of  only 
184  feet  paid  $300,000  in  1867  and  one  dividend  of  $24,000 
in  1868,  but  nothing  afterwards.  The  Empire  Mill  paid 
$49,200  in  1867,  but  nothing  since.  The  Sierra  Nevada  paid 
six  monthly  dividends  of  $7,500  each  in  1869,  together  with 
three  of  the  same  amount  and  one  of  $15,000  in  1870,  and 
one  of  $20,000  in  January,  1871,  making  $102,500  in  all. 
This  mine  at  one  time  was  expected  to  show  up  a  large 
body  of  milling  ore,  and  the  speculative  movement  in  the 
shares  sent  up  prices  rapidly  and  to  a  high  figure,  but  the 
expected  bonanza  did  not  materialize.  Confidence  paid 
$204,500  in  dividends,  but  that  was  many  years  ago.  Silver 
Hill  has  paid  some  small  dividends. 

Con,  Virginia  Bonanza. 

The  bullion  yield  of  the  Belcher  and  Crown  Point  mines 
from  1872  to  1876,  inclusive,  was  $64,000,000.  This  large 
amount  was  a  great  stimulus  to  those  operating  on  other 
sections  of  the  lode,  though  some  of  them  up  to  that  dis- 
covery had  become  quite  discouraged.     This  was  especially 


The  West  the  Best  and  California  the  Best  of  the  West.  23 

true  of  those  operating  at  the  other  end  of  the  lode.  Some 
of  these  were  staking  much  on  what  they  considered  their 
final  test.  Fortunately,  this  last  effort  proved  successful. 
Ore  had  been  discovered  in  the  Con.  Virginia  ground.  This 
claim  was  then  registered  as  containing  1160  feet,  and 
was  divided  into  11,600  shares  of  the  par  value  of  $300. 
Before  this  discovery  was  made  public  some  additional 
ground  adjoining  the  claim  was  secured.  Subsequently  this 
ground  was  divided,  and  a  portion  of  it  was  incorporated 
under  the  name  of  the  California  Mining  Company. 

The  first  indications  that  a  body  of  good  ore  had  been 
struck  were  soon  realized  to  the  satisfaction  of  those  who 
had  worked  long  and  hard,  patiently  waiting  for  the  re- 
vealed development.  The  owners  immediately  got  busy  on 
the  find. 

The  Con,  Virginia  and  California  mines  had  each  been 
incorporated  with  a  capital  of  $10,800,000,  divided  into 
108,000  shares.  On  May  7,  1874,  the  Con.  Virginia  paid  its 
first  dividend  at  the  rate  of  $3  per  share,  or  $324,000.  Nine 
more  dividends  at  the  same  rate  were  paid  in  the  follow- 
ing nine  months.  These  were  followed  with  thirteen  at  $10 
per  share,  or  at  the  rate  of  $1,080,000  per  month. 

During  this  interval  the  ore  taken  from  the  California 
mine  had  been  sold  to  the  Con.  Virginia  Company,  the  con- 
trolling interest  in  both  being  held  by  the  same  parties. 

Early  in  1876  the  capital  was  further  increased  to 
540,000  shares,  or  at  the  rate  of  five  for  one.  This  was  fol- 
lowed by  a  reduction  in  the  monthly  dividends  from  $10 
to  $2  per  share.  This  reduction  in  the  rate  per  share,  of 
course,  did  not  affect  the  gross  amount  of  the  monthly  divi- 
dends, which  had  been  at  $1,080,000  per  month  from 
March,  1875.  The  first  dividend  of  $2  per  share  on  the 
540,000  share  basis  was  paid  by  the  Con.  Virginia  on  April 
4,  1876.      These  $2  per  share  monthly  dividends  were  main- 


24  The  West  the  Best  and  California  the  Best  of  the  West. 

tained  for  twenty-one  consecutive  months.  These  were 
followed  by  two  at  the  rate  of  $1  per  share,  then  five  at 
50c  per  share. 

The  California  mine  paid  its  first  dividend  on  May  8, 
1876,  at  the  rate  of  $2  per  share  on  540,000  shares,  or 
$1,080,000.  These  were  maintained  for  twenty-six  con- 
secutive months,  and  then  were  immediately  followed  by 
four  monthly  dividends  of  $1  per  share  and  four  at  50c  per 
share  on  the  same  number  of  shares.  California  paid  its 
last  dividend  in  December,  1879.  Con.  Virginia  suspended 
the  payment  of  dividends  after  the  one  paid  in  August, 
1880.  Up  to  that  time,  the  combined  dividends  of  both 
mines  reached  the  magnificent  sum  of  $74,250,000.  No  other 
two  mines  on  this  coast  have  equalled  that  sum  in  the  same 
interval. 

The  last  dividends  on  both  of  these  mines  were  50c 
per  share  on  540,000  shares  in  each.  For  two  years  prior 
to  the  payment  of  these  dividends,  both  mines  had  been 
shorn  of  their  former  prosperity.  At  the  time  California 
paid  its  last  dividend  the  stock  was  selling  at  $3,  and  dur- 
ing the  month  that  Con.  Virginia  paid  its  last  dividend  the 
stock  ranged  from  $2.50  to  $4.50  per  share. 

Soon  after  the  suspension  of  this  splendid  dividend 
record,  stockholders  were  called  upon  to  put  up  money  on 
account  of  assessments.  Things  went  from  bad  to  worse  for 
the  next  four  years,  despite  the  most  economical  manage- 
ment that  could  be  devised.  The  mines  had  the  appear- 
ance of  being  thoroughly  and  hopelessly  exhausted. 

Rather  than  abandon  the  properties  altogether,  they 
were  consolidated  under  the  name  of  the  Consolidated 
California  and  Virginia.  At  the  same  time  the  combined 
capital  of  $108,000,000,  in  1,080,000  shares,  as  formerly 
represented  by  the  two  mines,  of  the  Consolidated 
California     and     Virginia     was     reduced     to     $21,600,000, 


The  West  the  Best  and  California  the  Best  of  the  West.  25 

in  216,000  shares.  For  two  weeks  previous  to  the  issue  of 
the  new  shares,  California  had  been  selling  at  30c  to  40c 
per  share,  and  Con.  Virginia  at  5c  to  25c  per  share,  and 
the  day  before  the  issue  at  35c  and  15c  respectively. 

The  new  stock  was  put  out  on  16th  October,  1884,  and 
the  first  sales  were  at  60c  per  share.  To  show  what  in- 
vestors thought  of  the  consolidation  of  the  two  properties 
and  the  radical  reduction  in  the  paper  capital,  it  is  only 
necessary  to  say  that  at  35c  for  California  shares  and  15c 
for  the  shares  of  the  Con.  Virginia,  the  prices  paid  for  the 
old  shares  on  the  15th  October,  the  two  mines  had  an 
aggregate  market  value  of  $270,000,  while  at  60c  per  share 
for  the  new  issue  the  same  property  was  estimated  at 
$129,600,  showing  a  depreciation  of  $140,400  in  a  single  day. 

Probably  the  lowest  price  for  the  property  prior  to 
the  consolidation,  as  based  on  the  market  value  of  the 
shares,  was  in  April,  1884,  when  the  estimate  was  $54,000. 
In  December,  1884,  the  new  shares  sold  at  40c  to  5c.  At 
the  latter  figure  the  market  value  for  the  property  was 
only  $10,800. 

In  strange  contrast  to  this  remarkable  depreciation,  it 
may  be  stated  that  on  January  5,  1875,  when  each  mine  was 
divided  into  108,000  shares,  under  rumors  that  the  number 
of  shares  would  be  considerably  increased  very  soon,  Cali- 
fornia sold  at  $780  per  share  and  Con.  Virginia  at  $715. 
These  were  the  highest  prices  ever  paid,  and  on  the  basis 
of  108,000  shares  in  each  mine,  it  presumed  a  market 
value  of  $161,460,000  for  both  mines,  which,  just  ten  years 
later,  by  the  same  process  of  reasoning,  were  reckoned  to 
be  worth  only  $10,800.  The  first  assessment  on  the  new 
stock  was  levied  in  November,  1884,  and  the  second  in 
January,  1885,  the  former  being  30c  per  share  and  the 
latter  20c.     After  this  new  money  had  been  paid  in  the 


26  The  West  the  Best  and  California  the  Best  of  the  West. 

stock  fell  to  10c  per  share,  thus  showing  a  poor  return  for 
the  50c  paid. 

These  two  assessments  gave  the  company  $108,000  of 
new  capital,  which,  added  to  the  bullion  produced  dur- 
ing the  year,  furnished  a  surplus  to  justify  the  payment 
of  a  dividend  of  30c  per  share,  which  was  paid  on  Feb- 
ruary 12,  1886.  For  the  fiscal  year  ending  October  1,  1886, 
the  bullion  product  was  $1,482,625,  of  which  about  one- 
half  was  gold. 

Some  new  ground  in  the  old  California  mine  was  being 
worked  at  that  time.  In  his  report  for  1886,  Superin- 
tendent Patton  said  that  one  of  the  drifts  had  "passed 
through  some  fair  milling  ore,  showing  favorable  indica- 
tions for  an  ore  body  of  some  extent  and  value,  which  may 
be  developed  by  further  explorations.  This  portion  of  the 
mine  above  the  1400-foot  level  is  virgin  ground.  The  old 
California  ore  body  did  not  extend  up  to  this  level." 

From  1885  to  September  30,  1897,  the  Consolidated  Cali- 
fornia and  Virginia  paid  a  number  of  dividends,  aggregat- 
ing $3,898,800.  About  six  years  later,  three  more  dividends 
of  10c  per  share  each  Avere  paid,  amounting  to  $64,800. 
There  have  been  no  dividends  since.  The  total  dividends 
from  the  property,  as  worked  by  the  three  corporations,  to 
September  1,  1912,  is  $78,213,600.  The  gross  value  of  the 
bullion  product  from  the  property  for  the  same  interval 
is  about  $135,000,000.  This  bullion  averaged  about  45  per 
cent  gold  and  55  per  cent  silver.  The  silver  was  reckoned 
at  its  coinage  value  for  several  years,  namely,  $1.29  per 
ounce,  and  the  discount  on  the  same  charged  to  expense 
account.  Up  to  October,  1878,  this  discount  amounted  to 
$6,140,600.     Work  on  the  mine  is  still  in  progress. 


The  West  the  Best  and  California  the  Best  of  the  West.  27 

Dividends  From  Comstock  Lode. 

"Work  on  the  Comstock  Lode  has  been  carried  on  for 
54  years,  and  the  known  dividends  aggregate  over  $200,- 
000,000.  If  these  represent  only  50  per  cent  of  the  bullion 
product,  the  total  yield  of  the  Lode  is  in  excess  of  $400,- 
000,000.  It  is  known  that  ten  of  these  Comstock  mines 
have  paid  $201,110,700  in  dividends.  It  is  further  known 
that  ten  other  mines  in  the  Lode  have  paid  upwards  of 
$2,000,000  in  dividends.  It  is  further  known  that  the  bul- 
lion product  of  the  California  and  Con.  Virginia  mines  for 
the  first  five  years  returned  70  per  cent  in  dividends.  The 
bonanza  in  the  Belcher  and  Crown  Point  mines  netted  over 
50  per  cent  in  dividends.  The  ore  bodies  in  these  four 
mines  were  the  most  extensive  ever  developed,  and  from 
these  examples  the  estimate  of  the  value  of  bullion  ob- 
tained from  the  Comstock  Lode  appears  to  be  fully 
justified. 

This  first  discovered  mining  ground  has  never  been 
abandoned.  For  the  past  thirty  years  these  Comstock  min- 
ing companies  have  kept  up  active  operations  in  spite  of 
many  discouraging  circumstances.  But  few  dividends  have 
been  paid  during  that  interval.  Not  a  single  year  has 
passed  without  a  bullion  product  from  one  or  more  of  these 
mines,  but  the  aggregate  yield  of  all  of  them  for  any  one 
year  of  the  past  thirty  has  not  covered  the  aggregate 
annual  expenses  of  the  whole  group,  and  assessments  have 
made  good  the  deficit. 

Other  Mining  Camps  in  Nevada. 

Before  the  end  of  the  first  decade  of  mining  on  the 
Comstock,  other  sections  of  Nevada  were  being  exploited 
for  mineral  products,  and  in  some  cases  with  good  results. 
The  first   division  of  profits  from  these  enterprises  began 


28  The  West  the  Best  and  California  the  Best  of  the  West. 

about  1870,  and  continued,  with  occasional  interruptions, 
until  about  1890. 

According  to  the  record  of  the  writer,  one  of  the  best 
paying  Nevada  mines  in  that  interval,  outside  of  the  Corn- 
stock  mines,  was  the  Eureka  Con.  This  company  paid  its 
first  dividend  in  February,  1871,  amounting  to  $50,000. 
In  all,  it  paid  92  dividends  up  to  the  end  of  July,  1888. 
The  grand  total  of  these  dividends  was  $5,192,500.  This 
means  that  the  mine  was  a  good  bullion  producer  during 
that  interval. 

The  Meadow  Valley  mine  paid  its  first  dividend  in 
November,  1871,  and  within  a  space  of  two  years  it  paid 
$1,260,000  in  eleven  dividends. 

The  Northern  Belle  Mill  and  Mining  Company  paid  its 
first  dividend  in  June,  1875,  and  the  total  of  the  43  divi- 
dends paid  to  the  end  of  May,  1888,  was  $1,900,000. 

The  Manhattan  mine  at  Auston  paid  11  dividends  be- 
tween May,  1875,  and  February,  1886,  amounting  to 
$447,500. 

The  Grand  Prize  mine  paid  two  dividends  of  $200,000 
in  the  Fall  of  1877. 

In  the  last  six  months  of  1879  the  Belle  Isle  mine  paid 
$300,000.  The  Martin  White  paid  $90,000  in  1879  and 
$11,000  in  1886,  and  the  Navajo  $325,000  from  1881  to 
1885.  It  is  possible  that  some  of  these  mines  have  paid 
dividends  since  1888. 

The  Raymond  &  Ely  mine,  in  Lincoln  County,  Nevada, 
had  a  spectacular  dividend  record  for  a  brief  period.  Its 
first  dividend  was  paid  in  March,  1871.  After  paying  four 
monthly  dividends  of  $30,000  each  and  one  of  $45,000, 
these  disbursements  were  suddenly  raised  to  $120,000,  then 
$150,000,  and  finally  $210,000  per  month.  Nine  dividends 
of  $615,000  were  paid  in  1871,  eleven  of  $2,070,000  in  1872, 
and  three  of  $390,000  in  1873,  the  last  one  in  September. 


The  West  the  Best  and  California  the  Best  of  the  West.  29 

After  paying  $3,075,000  in  dividends  in  that  brief  interval, 
the  movement  ceased.  This  was  followed  by  a  call  upon 
stocldiolders  for  money  to  meet  expenses.  A  record  of 
those  calls  is  not  at  hand,  but  it  is  known  that  the  assess- 
ment of  $3  per  share  levied  in  November,  1875,  was  the 
fifth. 

The  total  dividends  paid  by  the  Nevada  mines  from 
1860  to  date  cannot  be  given  with  any  definiteness,  because 
the  gold  and  silver  product  of  these  mines  is  not  known. 
Various  estimates  of  this  product  have  been  given,  ranging 
from  $400,000,000  to  $800,000,000  in  round  numbers.  It  is 
considered  good  opinion  to  claim  a  bullion  product  of 
$600,000,000  for  that  State,  and  to  assume  that  from  40  to 
50  per  cent  of  the  product,  whatever  it  may  be,  has  been 
returned  in  dividends  to  the  stockholders  or  owners  of  the 
claims  that  have  been  productive  to  a  greater  or  less 
extent.  It  is  known  that  some  mines  have  paid  dividends 
equal  to  50  per  cent  of  the  value  of  their  bullion  product, 
but  that  is  above  the  average. 

Goldfield  and  Tonopah  Mines. 

In  the  past  twelve  years  two  new  and  important  mining 
districts  have  been  opened  in  Nevada.  These  are  the 
Tonopah  in  Nye  County,  and  the  Goldfield  in  Esmeralda 
County.  It  was  in  May,  1900,  that  Jim  Butler  found  ore 
in  Tonopah,  and  the  first  ore  claims  were  located  in  the 
following  August,  and  in  June,  1901,  eight  of  Mr.  Butler's 
original  claims  were  sold  to  the  Tonopah  Mining  Company 
for  $336,000. 

The  Tonopah  Record  of  May  25,  1912,  gave  an  ex- 
haustive review  of  the  mines  in  the  Tonopah  district.  The 
bullion  yield  of  nine  of  these  mines  from  1900  to  April  30, 
1912,  was  $51,527,283.  Of  this  total,  the  Tonopah  Mining 
Company  was  credited  with  $29,213,153  and  the  Tonopah- 


30  The  West  the  Best  and  California  the  Best  of  the  West. 

Belmont  with  $10,413,144.  One  of  the  other  seven  mines 
produced  in  the  same  interval  $4,600,000  and  another  $3,- 
023,000. 

Since  January  1,  1902,  six  of  the  Tonopah  mines  paid 
$13,003,559  in  dividends  to  April  30,  1912,  though  the  first 
by  the  Montana-Tonopah  was  not  paid  until  December, 
1903. 

In  May,  1912,  there  were  seven  regularly  producing 
mines  in  Tonopah.  Six  of  these  were  operating  six  mills 
of  220  stamps,  and  crushing  37,400  tons  ore  monthly.  An- 
other 60-stamp  mill  has  since  been  added.  Four  of  the 
mines  were  paying  regular  dividends  and  tAvo  more  were 
expected  to  pay  dividends  very  soon.  There  were  69  miles 
of  underground  workings  in  these  mines,  1,260  operators, 
with  an  average  monthly  pay  roll  of  $237,000.  The  Tono- 
pah Mining  Company  paid  $1,000,000  in  dividends  for  1912 
and  $10,050,000  from  the  start — 11  years  ago. 

While  silver  is  the  predominant  metal  in  the  Tonopah 
district,  gold  holds  a  similar  rank  in  the  Goldfield  district. 
Indeed,  some  of  the  ore  samples  in  the  latter  district  have 
been  nearly  equal  to  refined  gold. 

In  1904  the  mines  of  the  Goldfield  district  realized 
$2,000,000  from  the  sale  of  ores  sent  elsewhere  for  reduc- 
tion. This  camp  has  been  quite  prosperous  from  the  start, 
especially  since  it  began  the  reduction  of  its  own  ores.  Of 
late  years  the  bullion  product  has  averaged  from  $750,000 
to  $1,000,000  per  month.  According  to  the  Daily  Tribune 
of  Goldfield,  the  best  approximate  estimate  of  the  product 
for  1911  was  $14,250,000,  while  the  dividends  for  the  same 
year  were  $7,320,461. 

The  principal  bullion  producer  and  dividend  payer  in 
the  Goldfield  district  in  the  last  three  years  has  been  the 
Goldfield  Consolidated  Mines  Company.  This  company  has 
been  paying  quarterly  dividends  of  30  cents  per  share  for 


The  West  the  Best  and  California  the  Best  of  the  West.  31 

some  time.  This  means  a  disbursement  of  $389,000  per 
month,  equal  to  $4,677,000  for  the  year.  A  dividend  of  30 
cents  per  share  was  paid  in  October,  1912.  According  to 
the  official  report,  dividends  paid  to  the  close  of  1912  were 
$23,839,067,  a  fine  record. 

At  that  time  and  for  some  weeks  previously  the  yield 
of  the  property  had  begun  to  fall  off,  and  fears  of  a  sus- 
pension of  dividends  began  to  be  entertained.  It  is  barely 
possible  that  the  property  controlled  by  the  company  will 
not  be  as  profitable  as  it  has  been.  But  it  is  not  safe  to 
assume  that  this  will  be  the  case.  Further  explorations 
may  show  a  still  larger  body  of  rich  ore. 

The  significance  of  these  discoveries  (Goldfield  and 
Tonopah)  will  be  more  fully  realized  and  appreciated  by 
the  statement  that  in  1899  the  Comstock  mines  reported 
the  smallest  product  in  their  history,  the  total  for  that 
year  being  only  $171,678.  Fortunately  there  were  other 
sections  in  the  State  that  were  more  prosperous,  and  a 
grand  total  of  $3,740,790  was  reported  in  that  year,  of 
which  $2,498,900  was  gold  and  $1,241,900  was  silver.  For 
that  and  the  following  three  years,  the  silver  produced  was 
reported  at  its  coining  value  of  $1.29  per  ounce.  In  all 
the  subsequent  annual  reports  the  white  metal  has  been 
reported  at  its  commercial  or  gold  value. 

Since  1899,  with  one  exception,  there  has  been  a  steady 
increase  in  the  product  of  the  precious  metals  in  Nevada. 
This  has  been  especially  noteworthy  in  the  last  six  years. 
Even  the  Comstock  mines  have  contributed  something 
towards  the  increase  from  year  to  year.  In  1900  the  Com- 
stock mines  reported  a  total  of  over  $700,000,  and  in  the 
following  two  years  a  further  gain  in  the  product,  which 
was  given  at  over  $1,200,000  for  each  year.  The  lead- 
ing factors  in  the  increase  since  1902  in  Nevada  have  been 
the   Tonopah   and   Goldfield   districts.      In    1905    the    gross 


32  The  West  the  Best  and  California  the  Best  of  the  West. 

product  of  Nevada  was  $8,935,800,  and  in  the  very  next 
year  $12,803,600,  of  which  75  per  cent  was  gold.  The 
product  for  1910  approximated  $26,000,000,  including 
nearly  $19,000,000  in  gold.  From  1899  to  1910,  both  years 
inclusive,  a  period  of  twelve  years,  Nevada  furnished  the 
world  with  $140,407,785,  of  which  $94,846,586  was  gold. 

Califomians  in  Other  Mining  Districts. 

No  apology  is  needed  for  the  large  amount  of  space 
which  has  here  been  devoted  to  the  consideration  of  the 
mining  interests  of  Nevada.  California  from  the  very  be- 
ginning has  taken  a  prominent  part  in  the  development  of 
this  industry  in  that  State.  It  has  contributed  men,  ma- 
chinery and  money  on  a  liberal  scale  in  the  prosecution  of 
the  work.  It  was  the  first  to  appreciate  the  importance 
of  the  undertaking,  and  it  has  persistently  followed  its 
endeavors  through  the  darkest  days  and  in  the  face  of  the 
most  unfavorable  reports  that  have  ever  been  given  pub- 
licity. California  is  still  Nevada's  best  friend  among  all 
the  States,  and  rejoices  in  the  recent  tokens  of  renewed 
prosperity  in  its  mining  and  other  industries. 

But  California  has  not  confined  its  interest  in  the  min- 
ing industry  to  the  developments  in  Nevada.  It  has  freely 
and  liberally  extended  its  aid,  financial  and  otherwise,  to 
the  establishment  and  perpetuation  of  the  same  industry 
in  adjoining  States  and  Territories  throughout  the  Trans- 
Mississippi  region.  The  experience  of  California  miners 
has  been  a  potent  factor  in  this  business.  All  who  engaged 
in  mining  in  California  in  the  pioneer  years  were  not 
trained  miners.  In  fact,  most  of  them  had  little  idea  of 
the  value  of  the  gravel  they  washed  or  of  the  quartz  they 
blasted.  But  there  were  some  trained  miners  among  them, 
and  the  novices  made  rapid  progress  in  the  new  employ- 
ment. 


The  West  the  Best  and  California  the  Best  of  the  West.  33 

The  mining  industry,  once  established  in  the  different 
States  and  Territories  in  the  great  Pacific  region,  was 
prosecuted  with  vigor,  and  it  is  still  being  pursued  in 
nearly  all  the  localities  where  it  first  obtained  a  foothold. 
This  work  has  been  going  on  ceaselessly  since  1848,  and 
there  are  no  indications  of  an  early  abandonment. 

Ten  of  the  States  in  which  this  industry  has  been  given 
hospitality  have  for  many  years  been  producing  an  average 
of  $1,000,000  in  gold  per  annum  as  a  minimum  amount. 
Most  of  them  have  done  much  better  than  that,  even  in 
the  more  recent  years. 

Among  these  States  which  have  been  so  prolific  in  the 
production  of  the  precious  metals,  California  has  always 
taken  high  rank  as  a  gold  producer.  It  was  the  first  State 
to  take  up  the  industry  on  this  coast,  and  in  point  of 
aggregate  yield  it  is  without  a  peer  in  the  field  of  gold. 
Its  annual  product  of  the  yellow  metal,  until  quite  recently, 
was  not  equaled  by  any  other  State  or  Territory  in  the 
country,  and  for  the  first  eighteen  years  it  was  larger  than 
the  combined  product  of  all  the  other  States  and  Terri- 
tories. In  one  of  these  years  it  stands  credited  in  the  Gov- 
ernment reports  with  a  product  of  $65,000,000  in  gold.  Its 
total  yield  of  gold  from  1848  to  1912,  both  years  inclusive, 
has  been  variously  estimated,  but  a  very  conservative 
figure  gives  the  amount  at  $1,609,737,000  to  January  1, 
1913. 

Rank  of  Gold  States. 

The  rank  of  the  gold  producing  States  and  Territories 
has  been  changed  many  times  since  California  commenced 
operations  along  that  line  in  1848.  Up  to  that  time  the 
production  of  gold,  so  far  as  this  country  is  concerned,  was 
confined  to  some  half  dozen  States,  mostly  in  the  South, 
principally  Georgia,  North  and  South  Carolina  and  Vir- 
ginia.     The    combined    gold    product    of    all    the    Atlantic 


34  The  West  the  Best  and  California  the  Best  of  the  West. 

States,  in  the  palmiest  days  of  the  industry,  probably 
never  reached  $500,000  in  any  one  year. 

California  assumed  first  place  in  the  production  of  gold 
at  the  very  start,  and  it  maintained  that  lead  annually 
until  1897,  when  it  gave  way  to  Colorado,  and  was  a  good 
second  in  the  race  until  1906.  The  somewhat  sudden  and 
unexpectedly  large  yield  of  gold  in  Alaska  in  1906  put 
that  Territory  in  the  second  rank  and  California  in  the 
third,  leaving  Colorado  still  in  the  first.  That  was  the 
condition  for  three  consecutive  years.  In  1909  and  again 
in  1910,  California  went  back  into  the  second  place,  and 
Alaska  assumed  third  place.  In  1911  California  resumed 
first  place,  the  position  it  held  from  1848  to  1896,  both 
years  inclusive.  Colorado  dropped  to  second  place  in  1931, 
Nevada  rose  to  third  place,  and  Alaska  was  forced  into  the 
fourth  place.     In  1912  California  was  again  in  the  lead. 

In  1894  Montana  held  third  place,  but  two  years  later 
South  Dakota  took  that  rank  and  held  it,  with  one  single 
exception,  until  1901.  Then  Alaska  took  it  for  four  years, 
and  again  in  1909  and  1910. 

South  Dakota  ranked  fourth  in  1894,  1895  and,  with 
one  exception,  from  1900  to  1905.  Since  then,  with  one 
exception,  it  has  held  the  sixth  place. 

Idaho  was  fifth  in  1894,  then  sixth  for  the  following 
two  years.  Since  then  it  has  generally  ranked  nine,  and 
for  four  of  the  intermediate  years  was  in  the  tenth  place. 

Oregon  was  in  the  sixth  place  in  1894,  but  in  four  of 
the  subsequent  years  it  held  the  ninth  place,  and  during 
the  remainder  of  that  interval  it  occupied  the  tenth  place. 

Arizona  occupied  seventh  place  in  1894  and  again  in 
1898,  but  in  the  subsequent  years  it  held  sixth  place  for 
six  years  and  fifth  place  in  1895  and  1896.  From  1904  to 
1911  it  held  the  eighth  place. 

Nevada  ranked  eight  in  1894  and  1895.     In  the  subse- 


The  West  the  Best  and  California  the  Best  of  the  West.  35 

quent  year  to  1903  it  held  the  same  rank  for  three  years, 
seventh  for  three  years  and  fifth  for  two  years.  In  1904 
and  1905  it  was  again  fifth.  In  the  next  five  years  it 
assumed  fourth  place.  In  1911  it  took  the  third  rank  for 
the  first  time,  the  highest  it  has  ever  held.  Nevada  has 
always  been  classed  as  a  silver  State,  as  most  of  the  bullion 
produced  up  to  1908  carried  at  least  55  per  cent  in  silver, 
and  in  some  of  the  sections  considerably  more. 

Utah  held  tenth  place  in  1894.  For  the  next  four  years 
ninth  and  eighth.  For  the  next  six  years  it  was  seventh 
and  eighth.  Since  1905  it  has  held  sixth  place  six  times. 
It  was  in  the  fifth  rank  in  1899  and  1907. 

Searching  for  the  precious  metals  in  the  Territories  of 
Oregon  and  Utah  began  in  the  early  fifties.  The  seekers 
were  looking  for  gold  rather  than  silver.  If  what  they 
unearthed  did  not  show  indications  of  the  yellow  metal, 
it  was  cast  aside  as  useless.  Following  in  their  wake  were 
some  experts  who  saw  a  silver  value  in  what  had  been  dis- 
carded by  others.  This  was  the  beginning  of  silver  mining 
on  this  coast. 

As  at  that  time  and  for  many  years  afterwards,  silver 
dollars  were  just  as  good  as  gold  dollars,  and  at  times 
commanded  a  small  premium  over  the  latter,  the  discovery 
of  silver  ores  meant  much  to  those  who  could  find  and 
work  them.  This  led  to  an  extension  of  the  search  into 
the  adjacent  Territories  of  Idaho,  Colorado  and  Montana 
in  the  northeasterly  direction  from  California,  and  to  the 
Territories  of  Arizona  and  New  Mexico  in  the  opposite 
direction. 

Colorado  and  Montana  soon  took  the  lead  as  silver  pro- 
ducing sections  of  the  country.  According  to  the  Mint 
Director's  report  for  1891,  these  two  States  produced  65 
per  cent  of  all  the  silver  product  of  the  United  States  for 
that  year.    In  the  same  year  Utah  ranked  third  in  the  list, 


36  The  West  the  Best  and  California  the  Best  of  the  West. 

Idaho  was  fourth  and  Nevada  was  fifth.  These  have  been 
the  ranking  silver  States,  though  not  always  in  the  same 
category.  In  1910  Nevada  occupied  the  first  place  and 
Colorado  was  fourth. 

While  it  is  true  that  most  of  the  mining  experiments 
in  this  country  have  been  utter  failures,  and  while  some 
of  them  have  involved  heavy  losses  to  those  interested, 
every  mining  district  of  any  consequence  has  produced  one 
or  more  good  paying  mines.  Yet  the  risks  in  legitimate 
mining  enterprises  are  probably  no  greater  than  in  many 
other  departments  of  business.  Mining  has  been  phenom- 
enally successful  in  certain  sections  of  this  western  part  of 
the  country,  and  this  has  led  to  the  promotion  of  many 
illegitimate  enterprises. 

In  the  annual  report  of  mining  in  Nevada  in  1906,  as 
published  in  the  Mint  Director's  report,  there  were  1,500 
mines  in  operation  in  that  State,  but  only  one-third  of  this 
number  produced  any  bullion.  This  illustration  is  prob- 
ably measurably  true  of  other  years  in  that  State  and  of 
other  mining  States  and  Territories  in  all  years  since  the 
inception  of  the  industry.  Attractive  business  enterprises 
of  all  kinds  breed  counterfeit  imitators  largely  in  excess  of 
genuine  operators. 

It  must  be  said  to  the  credit  of  California  that  it  has 
developed  comparatively  few  of  these  mining  fakirs.  This 
is  largely  due  to  the  fact  that  mining  has  been  conducted 
by  private  capital,  sometimes  of  course  under  a  corporate 
name,  but  rarely  as  stock  jobbing  enterprises.  As  soon  as 
it  became  the  rule  to  incorporate  mining  claims,  the  door 
was  thrown  wide  open  for  the  introduction  of  many  illegit- 
imate schemes. 


The  West  the  Best  and  California  the  Best  of  the  West.  37 

Mining  in  Other  Pacific  States. 

Mining  in  Utah  has  developed  some  good  properties. 
One  especially  easily  recalled  is  the  Ontario  mine.  This 
was  a  silver  proposition.  It  paid  its  first  dividend  in 
March,  1877,  at  the  rate  of  50  cents  per  share  on  100,000 
shares.  Monthly  dividends  were  regularly  maintained  for 
many  years,  the  only  break  occurring  in  1883,  when  only 
four  dividends  were  paid.  The  hiatus  in  that  year  was 
due  to  some  local  difficulty.  The  extra  dividends  paid  in 
the  first  two  years  more  than  made  good  the  omissions  in 
1883.  It  paid  six  extra  monthly  dividends  in  1877  and  nine 
in  1878.  The  dividends  for  the  last  ten  months  in  1877 
amounted  to  $850,000'  and  for  the  following  year  they  were 
$1,050,000.  That  was  its  dividend  record  year.  From 
March,  1877,  to  December,  1889,  the  mine  paid  162  divi- 
dends, aggregating  $10,650,000,  of  which  $5,125,000  was 
paid  in  the  first  seven  years  and  $5,475,000  in  the  last 
six  years  of  the  interval. 

This  closes  the  writer's  personal  record  of  the  Ontario's 
dividends,  but  it  is  known  that  the  mine  paid  dividends 
at  intervals  for  at  least  a  dozen  years  longer.  In  a  state- 
ment by  the  writer  in  January,  1902,  the  Ontario  was 
credited  with  having  paid  up  to  that  time  $14,739,000  in 
dividends,  and  the  Horn  Silver,  also  in  Utah,  $5,642,000. 
In  connection  with  this  statement  it  was  remarked  that 
these  two  mines  were  among  the  most  prosperous  strictly 
silver  mines  in  the  country.  Utah  has  opened  several  other 
good  dividend  mines,  including  Centennial  Eureka,  which 
paid  $3,600,000;  Daly-West,  $6,519,000;  Con.  Mercer,  $3,- 
415,300;  Silver  King,  $4,288,000,  and  Utah  Con.,  $7,500,000. 

Idaho  mine  operators  have  conducted  their  business 
along  conservative  lines,  having  been  modest  in  their  calls 
for  capital  for  the  development  of  properties,  and  not  very 
extravagant  in  the  disbursement  of  dividends.     Yet  it  has 


38  The  West  the  Best  and  California  the  Best  of  tJie  West. 

for  many  years  been  able  to  report  one  or  more  dividend- 
paying  mines.  In  some  years  the  number  has  run  as  high 
as  eight  or  ten.  One  of  the  earliest  in  the  writer's  record 
was  the  Golden  Chariot,  the  wheels  of  which  were  first 
heard  in  1869,  when  dividends  were  inaugurated  amount- 
ing to  $105,000,  followed  with  $75,000  in  the  next  year, 
$170,000  in  1871  and  $85,000  in  1873,  making  $435,000  in  all. 
Next  came  the  Ida  Elmore  in  1869,  with  four  dividends, 
amounting  to  $40,000  in  the  last  four  months  of  that  year, 
and  two  of  $20,000  in  the  first  two  months  of  the  following 
year,  making  $60,000  in  all. 

Placer  mining  in  Idaho  was  inaugurated  In  1852,  and 
with  good  results.  This  was  followed  by  lode  mining, 
which  has  since  been  continued  without  a  break.  Consid- 
ering the  difficulties  under  which  the  work  has  been  prose- 
cuted for  the  most  part  during  this  interval,  the  returns 
have  been  quite  encouraging.  From  1893  to  1901  the 
De  Lamar  mine  paid  $2,293,200  in  dividends;  Bunker  Hill 
and  Sullivan,  $13,911,750.  In  more  recent  years  the  Idaho 
mines  have  disbursed  from  $1,000,000  to  $1,500,000  per 
annum  in  dividends. 

Oregon  began  mining  for  the  precious  metals  in  1852, 
and  the  industry  has  been  maintained  ever  since.  For  the 
most  part  the  work  has  been  conducted  very  quietly.  The 
product  has  been  mainly  gold,  the  annual  yield  of  which 
has  varied  from  $600,000  to  $1,800,000,  with  an  average  of 
$1,130,000  for  the  past  thirty  years.  The  yellow  metal  has 
come  from  a  dozen  or  more  counties  in  various  parts  of 
the  State,  and  the  belief  is  entertained  that  the  yield 
will  increase  as  the  years  go  by.  The  industry  is  being 
prosecuted  along  strictly  business  lines. 

Washington  has  been  content  with  a  much  smaller  gold 
yield  than  Oregon,  though  the  industry  has  been  conducted 
for  the  same  number  of  years.     For  some  time  the  yield 


The  West  the  Best  and  California  the  Best  of  the  West.  39 

has  ranged  from  $100,000  to  $800,000  per  annum.  Mining 
has  been  carried  on  in  several  counties  of  the  State,  and 
interested  parties  are  confident  that  the  future  will  show 
better  results  than  have  been  thus  far  obtained. 

Wyoming  is  not  discouraged  in  its  search  for  the  pre- 
cious metals,  though  thus  far  it  has  little  to  show  for  the 
capital  and  labor  expended.  This  State  originally  formed 
a  part  of  Utah,  Idaho  and  Dakota,  all  gold  metal  bearing 
States,  and  therefore  has  some  justification  for  anticipating 
discoveries  in  precious  metals  that  have  not  yet  been 
realized.  It  only  became  a  State  in  1890,  and  so  was  late 
in  taking  up  the  search  for  gold. 

Colorado  has  shown  phenomenal  vigor  in  its  mining 
activities,  though  a  little  late  in  their  inauguration.  It  is 
true,  some  work  was  done  on  a  small  scale  in  1859, 
two  years  before  it  became  a  Territory,  and  seventeen 
years  before  it  was  admitted  as  a  State.  From  1859  to 
1870  its  friends  claim  a  gold  product  of  $27,313,000  and  a 
silver  product  of  $330,000.  It  was  subsequent  to  the  latter 
year  that  it  began  to  attract  general  attention,  first  as  a 
liberal  producer  of  silver,  and  it  Avas  twenty  years  later 
before  it  made  much  of  a  show  as  a  gold  producer.  It  was 
the  Leadville  silver  mines  that  first  gave  it  any  general 
publicity.  These  mines  were  developed  rapidly  and  on  a 
liberal  scale,  and  about  the  time  the  yield  of  the  white 
metal  had  reached  its  climax,  the  yield  of  its  gold  mines, 
which  had  been  opened  at  a  later  period  than  the  Lead- 
ville silver  discovery,  began  to  show  large  and  steadily 
increasing  yields  of  the  yellow  metal.  This  continued  for 
several  years,  and  in  1897  it  surpassed  for  the  first  time 
California,  which  had  hitherto  held  that  lead.  Colorado 
is  still  a  liberal  producer  of  gold,  but  in  1911  California 
again  took  first  place  by  a  small  margin.  Colorado  has 
also  made  great  strides  in  the  production  of  copper.     In 


40  The  West  the  Best  and  California  the  Best  of  the  West. 

1900,  according  to  tlie  Mining  and  Engineering  Journal, 
sixty  Colorado  mining  companies  of  all  sorts  paid  $7,959,- 
000  in  dividends,  while  in  the  very  next  year  forty  of  these 
corporations  paid  $7,836,000. 

Montana  was  still  later  in  opening  its  gold  and  silver 
mining  industry.  It  did  not  obtain  territorial  recognition 
until  1864,  and  after  serving  in  that  capacity  for  a  quarter 
of  a  century  it  was  admitted  as  a  State.  There  were  no 
annual  compilations  of  its  product  of  gold  and  silver  until 
1882,  but  according  to  a  published  estimate,  its  yield  of 
gold  from  1862  to  1881  was  $200,000,000  and  its  yield  of 
silver  $11,000,000.  It  has  never  been  very  prominent  as 
a  producer  of  gold,  though  its  annual  yield  since  1881  has 
varied  from  about  $2,000,000  to  over  $5,000,000.  It  has 
been  a  large  producer  of  silver  from  the  start,  and  in  some 
years,  in  connection  with  Colorado,  the  two  States  have 
produced  over  60  per  cent  of  the  American  silver  product. 
Montana  has  been  still  more  noteworthy  as  the  producer 
of  copper,  finally  wresting  first  place  even  from  Michigan, 
which  first  developed  that  industry  in  the  forties.  The 
copper  product  of  Montana  has  carried  a  good  percentage 
of  silver,  as  has  been  the  case  with  the  copper  mines  in 
Colorado,  Arizona  and  other  copper  producing  sections  in 
these  western  States.  The  mining  of  these  three  metals 
in  Montana  has  been  quite  profitable,  as  judged  by  the 
dividends  paid  by  the  corporations  so  engaged.  In  1900 
ten  of  these  Montana  companies  paid  $13,754,600  in  these 
dividends. 

Arizona  became  a  Territory  in  1863  and  a  State  in  1912. 
Mining  operations  were  conducted  in  a  limited  way  pre- 
vious to  1863.  It  was  placer  mining  at  first,  with  fairly 
good  results  in  gold.  In  the  subsequent  development  of 
quartz  mining,  silver  was  so  much  more  prominent  than 
gold  that  Arizona  was  classed  as  a  silver  proposition.    Some 


The  West  the  Best  and  California  the  Best  of  the  West.  41 

years  later,  gold  took  the  lead,  and  the  Territory  made 
quite  a  fine  exhibit  in  the  production  of  the  yellow  metal. 
Both  metals  are  still  produced  in  good  quantity.  Still 
later,  copper  was  encountered  in  good  paying  quantity  and 
quality,  and  in  some  cases  these  disclosures  were  in  mines 
that  had  been  previously  worked  for  the  more  precious 
metals.  It  was  not  long  before  the  value  of  the  copper 
product  was  greater  than  the  combined  value  of  the  gold 
and  silver  product  of  the  Territory.  These  discoveries 
soon  attracted  the  attention  of  Eastern  capitalists,  espe- 
cially those  interested  in  the  Michigan  copper  mines,  and 
as  a  result  several  of  these  copper  claims  were  taken  up 
by  Eastern  people.  In  1896  Arizona  produced  30  per  cent 
of  the  American  copper  product.  From  1877  to  1895  the 
value  of  the  gold,  silver  and  copper  product  of  Arizona 
was  $113,739,000,  and  the  subsequent  yield  has  been  pro- 
portionately much  larger.  Between  1878  and  1888  the 
Silver  King  mine  of  Arizona  paid  $1,850,000  in  dividends, 
and  between  1880  and  1883  the  mine  worked  by  the  West- 
ern and  afterwards  the  Contention  Consolidated  paid  $2,- 
462,500  in  dividends. 

New  Mexico  was  originally  formed  out  of  Texas  and 
Mexico  in  the  respective  proportions  of  two-thirds  of  the 
former  and  one-third  of  the  latter,  and  became  a  Terri- 
tory of  the  United  States  in  1850.  It  was  reduced  to  its 
present  limits  in  1866,  and  became  a  State  in  1912.  It  is 
understood  to  have  large  and  varied  mineral  resources. 
The  development  of  these  resources  has  been  somewhat 
slow  compared  with  other  mineral  secticwrs  of  the  western 
end  of  the  country.  But  faith  in  the  existence  of  the 
resources  shows  no  abatement.  As  between  gold  and  silver, 
the  latter  has  taken  the  lead  so  far.  The  copper  product 
has  also  made  a  fair  show.  Now  that  it  has  assumed 
Statehood,  New  Mexico,  to   meet  its  new  responsibilities, 


42  The  West  the  Best  and  California  the  Best  of  the  West. 

will  doubtless  become  busy  in  unearthing  its  hidden  re- 
sources on  a  more  liberal  scale  than  has  hitherto  prevailed. 
Texas  was  formerly  a  part  of  Mexico,  but  seceded,  be- 
came a  republic,  and  was  annexed  as  a  State  by  the 
United  States  in  1845,  and  has  a  larger  area  than  any  other 
State  in  the  country.  It  has  good  mineral  resources,  in- 
cluding gold,  silver,  lead  and  copper.  Its  yield  of  gold 
to  date  has  been  quite  limited.  The  United  States  Mint 
reports  make  no  record  of  the  product  of  gold  in  Texas 
prior  to  1896,  nor  of  silver  prior  to  1889.  What  the  future 
will  show  with  respect  to  the  product  of  these  metals  in 
that  State  time  alone  will  determine. 

South  Dakota  became  a  State  in  1889,  when  the  Da- 
kota Territory  was  divided  in  two  States  as  North  and 
South  Dakota.  The  Black  Hills  region  in  South  Dakota 
has  shown  wonderful  resources  of  gold  and  other  mineral 
products.  It  has  the  credit  of  the  first  production  of 
metallic  tin  in  America.  Its  gold  product  from  the  start 
has  been  large  and  regular.  California  capital  had  much 
to  do  in  opening  up  these  gold  deposits.  The  Homestake 
Mining  Company,  which  took  the  lead  in  these  develop- 
ments, is  a  California  corporation.  The  property  is  at  Lead 
City,  three  miles  from  Deadwood.  It  was  originally  pur- 
chased by  George  Hearst  of  San  Francisco  in  1875,  for 
$100,000.  The  property  was  incorporated  in  1877  in  100,- 
000  shares,  rated  at  $2  per  share.  Additional  land  was 
subsequently  secured  at  various  times,  and  improvements 
of  high  order  and  great  capacity  installed.  Two  assess- 
ments, amounting  to  $200,000  were  paid,  the  last  in  1878. 
The  first  dividend  was  paid  in  January,  1879,  at  the  rate 
of  30  cents  per  share,  or  $30,000.  There  have  been  few 
interruptions  to  these  dividends  from  that  year  to  the 
present.  Most  of  the  ore  is  low  grade,  say  from  $5  to  $8 
per  ton,   but  so   far  the   deposit  has  not   been  exhausted. 


The  West  the  Best  and  California  the  Best  of  the  West.  43 

It  has  proven  to  be  the  most  extensive  deposit  of  ore  yet 
found  on  the  American  continent.  In  1886,  it  was  pre- 
dicted that  there  was  enough  ore  then  in  sight  to  last 
thirty  years.  This  prediction  has  been  verified.  The  man- 
agement of  the  mine  has  been  eminently  successful. 

From  1879  to  1889,  both  years  inclusive,  the  Homestake 
mine  paid  dividends  to  the  amount  of  $4,455,750,  equal  to 
over  $400,000  per  annum.  For  the  next  ten  years  it  did 
even  better  than  that,  the  total  for  that  interval  being 
$4,700,000,  or  an  average  of  $470,000  per  annum.  From 
1900  to  1912,  both  years  inclusive,  further  dividends  were 
paid  with  great  regularity  and  in  much  larger  amounts. 
In  the  absence  of  official  returns  for  some  of  the  years  in 
that  interval,  the  total  is  estimated  to  have  been  $19,693,- 
890.  Accepting  this  amount  for  that  interval  to  be  approx- 
imately correct,  the  total  dividends  paid  by  the  mine  to  the 
close  of  1912  would  be  $28,849,640. 

Since  1906,  if  not  before,  the  mine  has  been  paying 
dividends  on  218,400  shares,  and  for  a  portion  of  that  time 
at  least  at  the  rate  of  50  cents  per  share.  The  dividends 
for  January  and  February,  1913,  were  65  cents  per  share. 

On  February  20,  1913,  the  stockholders,  at  a  special 
meeting,  authorized  an  increase  of  15  per  cent  in  the 
capital  stock.  This  increase  of  stock  is  in  the  nature  of 
a  stock  dividend  to  the  stockholders. 

The  company  recently  made  a  cash  donation  of  $159,000 
to  its  employes. 

From  1880  to  1897  the  Deadwood  Terra  mine  in  the 
same  district  paid  dividends  of  $1,455,000.  From  1880  to 
1883  the  Father  de  Smet  paid  $1,125,000.  From  1895  to 
1899  the  Highland  paid  $670,000.  From  1897  to  1900  the 
Holy  Terror  paid  $167,000.  Other  dividend  mines  in  the 
same  camp  embrace  the  Caledonia,  Golden  Terra,  Golden 
Reward,  Lawrence  and  Wasp. 


44  The  West  the  Best  and  California  the  Best  of  the  West. 

Alaska  was  purchased  by  the  United  States  from  Russia 
in  1867  for  $7,200,000.  The  Russians  knew  but  little  about 
the  Territory,  or  they  would  not  have  sold  it  for  that 
amount.  In  1855,  Darrehan,  a  member  of  an  engineer 
corps,  was  sent  out  from  St.  Petersburg  to  explore  the 
territory.  He  and  his  comrades  spent  over  two  years  on 
that  errand,  and,  though  they  discovered  indications  of 
gold  and  copper,  he  made  a  report  condemning  the  country. 

Some  years  later,  another  Russian  engineer,  in  survey- 
ing the  shores  of  Silver  Bay,  near  Sitka,  found  some  float 
gold,  but  not  enough  to  justify  operations.  The  purchase 
of  Alaska  included  numerous  islands  along  the  coast,  some 
of  them  of  considerable  area,  and  a  large  section  of  the 
mainland  adjoining  British  Columbia  on  the  north. 

It  was  known  long  before  this  purchase  was  made  that 
a  mineral  belt  of  much  value  had  been  traced  northward 
from  Mexico  through  California,  Nevada,  Oregon,  Wash- 
ington and  British  Columbia  to  the  very  confines  of  Alaska, 
and  that  the  same  or  a  similar  deposit  had  been  worked 
in  Siberia,  on  the  other  side  of  Alaska,  Professor  Wil- 
liam Blake  visited  the  Stickeen  River  in  1862,  and 
Professor  John  IMuir,  then  State  Geologist  of  California, 
spent  the  years  1879  and  1880  in  studying  the  glacial 
districts  of  Alaska  from  the  southern  boundary  to  the  Arc- 
tic Ocean.  Mr.  Muir  is  reported  to  have  found  signs  of 
gold  in  every  stream  in  the  territory,  and  was  certain  that 
Alaska  would  eventually  prove  to  be  one  of  the  rich  gold 
fields  of  North  America. 

These  reports  at  once  attracted  additional  searchers  for 
gold  to  the  territory.  Placer  mines  were  worked  on  the 
Stickeen  River  as  early  as  1862.  In  the  following  year  the 
yield  was  from  $3  to  $10  per  day  per  man.  In  1871  gold 
was  found  and  worked  at  Sitka.  A  Nevada  miner  named 
Haley  is  said  to  have  fired  the  first  blast  at  that  point, 


The  West  the  Best  and  California  the  Best  of  the  West.  45 

and  secured  $80  in  free  gold.  Other  ledges  were  found  in 
the  same  vicinity,  one  of  which  was  bought  by  a  San  Fran- 
cisco firm  and  incorporated  as  the  Baranoff  Island  Gold 
and  Silver  Mining  Company,  with  a  capital  of  $1,000,000. 
This  claim  was  previously  known  as  the  Stewart.  Placer 
mining  began  at  Sum  Dum  Bay,  an  indentation  of  the 
mainland  on  Stephenson  Straits,  a  hundred  miles  south  of 
Juneau,  in  1876. 

The  Paris  mine  on  Douglas  Island  was  located  in  1881, 
but  was  discovered  a  year  previously.  The  discovery  em- 
braced both  placers  and  quartz  lodes.  The  island  is 
eighteen  miles  long  and  seven  miles  wide,  and  directly 
opposite  Juneau.  The  mine  was  originally  owned  by  John 
Treadwell,  and  it  has  been  worked  almost  uninterruptedly 
since  1882.  It  was  first  incorporated  as  the  Alaska  Mill 
and  Mining  Companj^,  and  paid  its  first  dividend  of  $25,- 
000  in  August,  1885,  at  the  rate  of  25  cents  per  share  on 
100,000  shares.  Two  more  dividends  of  the  same  amount 
were  paid  in  the  same  year,  three  of  the  same  amount  in 
1886,  five  in  1887,  three  in  1888,  and  twelve  in  1889.  These 
twenty-six  dividends  of  $25,000  made  a  total  of  $650,000. 

In  1890  the  company  was  reincorporated  under  the 
name  of  the  Alaska  Treadwell  Mining  Company.  The  first 
mill  set  up  to  test  the  ores  carried  only  five  stamps.  Later 
the  company  had  240  stamps  in  operation,  which  at  that 
time  was  said  to  be  the  largest  quartz  mill  under  the  same 
roof  in  the  world. 

The  ore  has  been  of  low  grade  from  the  start,  but  is 
abundant,  and  it  has  been  economically  mined  and  milled. 
The  mine  was  opened  as  a  drift  mine,  the  ore  being  quar- 
ried from  the  side  of  the  hill  and  transported  by  rail  to 
the  mill.  The  property  has  for  some  time  been  worked 
through   shafts. 

The    gold   product   of  the   mine    under   the    first-named 


46  The  West  the  Best  and  California  the  Best  of  the  West. 

corporation  from  1882  to  1890  was  $2,339,399,  and  it  was 
from  that  product  that  the  $650,000  in  dividends  was  paid. 

The  total  bullion  product  of  the  mine  under  both  cor- 
porations to  the  close  of  1912  was  $31,583,307,  and  the 
total  dividends  were  $12,775,000. 

The  Alaskan-Mexican  mine,  adjoining  the  Alaska- 
Treadwell,  and  owned  and  operated  by  the  same  parties, 
produced  $9,942,368  in  bullion  to  the  close  of  1912  and 
paid  $2,093,381  in  dividends.  The  Alaskan-Mexican  began 
paying  dividends  in  1894. 

The  Alaska-United,  in  the  same  group  and  under  the 
same  ownership,  produced  $3,591,775  in  bullion  to  the  close 
of  1912,  and  paid  $1,062,290  in  dividends.  This  property 
was  of  later  development  than  the  other  two. 

Considering  the  low  grade  of  ore  in  these  properties, 
the  above  results  from  these  Douglas  Island  mines  is  re- 
markable. All  are  well  equipped  with  the  best  of  hoisting 
and  milling  plants,  and  are  well  managed. 

In  1897  mining  in  Alaska  took  on  new  and  more  exten- 
sive proportions,  because  of  some  recent  discoveries  of 
much  value  in  other  sections  of  the  Territory.  At  first 
these  renewed  operations  were  confined  to  the  placers,  and 
later  on  were  extended  to  quartz  mining. 

In  the  report  on  the  Production  of  Precious  Metals  in 
the  United  States  for  1905,  the  Hon.  Frank  A.  Leach,  then 
as  now  Superintendent  of  the  United  States  Mint  in  San 
Francisco,  furnished  a  carefully  prepared  statement  of  the 
sources  of  the  gold  product  of  Alaska  for  each  year  from 
1897  to  1905,  the  grand  total  of  which  was  $67,943,700.  At 
the  same  time  Mr.  Leach  also  furnished  a  statement  of  the 
gold  product  of  the  Klondike,  British  territory  adjoining 
Alaska,  for  the  same  interval,  the  total  of  which  was  $116,- 
519,400. 

It  was  the  finding  and  the  working  of  the  gold  deposits 


The  West  the  Best  and  California  the  Best  of  the  West.  47 

in  the  American  territory  of  Alaska  that  led  to  this  large 
product  of  gold  in  the  British  territory  of  the  Klondike 
in  those  nine  years. 

This  wonderful  gold  product  of  that  section  since  1880 
is  largely  due  to  California  capital  and  enterprise,  and  the 
same  kind  of  capital  and  enterprise  has  had  much  to  do 
with  the  yield  of  gold  in  this  entire  western  end  of  the 
country. 

The  metal  and  other  products  of  Alaska,  including  the 
furs  and  fisheries,  have  been  estimated  at  $446,641,000, 
while  the  disbursements  have  been  placed  at  $35,816,700, 
showing  a  net  profit  of  $410,824,700. 

Good   Dividend   Mines   in    California. 

In  this  review  of  gold  and  silver  mining  in  these  West- 
ern States  and  Territories  of  the  country  no  attempt  has 
been  made  to  give  a  complete  record  of  all  the  dividends 
paid  by  all  the  mines  that  have  distributed  their  profits 
in  that  way,  or  by  private  apportionment,  because  there  is 
no  available  data  for  a  statement  of  that  kind.  The  illus- 
trations given  are  correct  for  the  periods  named.  In  some 
cases  these  records  do  not  pretend  to  go  back  to  the  inaug- 
uration of  such  disbursements,  nor  of  extending  them 
down  to  date. 

It  is  to  be  regretted  that  a  complete  account  of  the 
profits  of  the  gold  and  silver  mines  of  the  country  cannot 
be  given,  not  even  from  a  single  one  of  the  most  prominent 
States  engaged  in  the  industry.  California  alone  has 
worked  many  profitable  enterprises  of  this  sort,  but  in 
many  cases  the  net  earnings  have  been  privately  allotted 
to  the  owners.  It  is  known  that  the  North  Bloomfield  and 
Milton  Gravel  Mining  Companies  produced  $4,420,000  in 
gold  bullion  by  the  hydraulic  process  between  1878  and 
1882,   on  which  the   profits  were   $2,333,600.     But   just   as 


48  The  West  the  Best  and  California  the  Best  of  the  West. 

this  form  of  mining  began  to  show  good  results,  the  oper- 
ators were  enjoined  from  working  their  properties  unless 
they  agreed  to  impound  the  debris.  This  injunction  greatly 
reduced  that  way  of  securing  gold  in  California  from  that 
time  to  the  present,  as  the  expense  for  impounding  debris 
was  too  great  to  be  borne. 

The  North  Bloomfield  and  Milton  Gravel  Mining  Com- 
panies were  enjoined  from  doing  any  work  for  four 
months  in  1881,  but  were  operated  as  usual  in  1882.  Soon 
afterwards  they  ceased  operations,  the  injunction  having 
been  made  permanent.  The  North  Bloomfield  paid  its  last 
dividend  of  $45,000  in  November,  1880.  The  payment  of 
this  dividend  made  a  total  of  $5,062,500  returned  to  stock- 
holders in  that  form.  Up  to  the  same  date  the  Milton 
Gravel  paid  $561,284. 

Prior  to  making  this  injunction  permanent  the  gravel 
mines  of  California  under  the  hydraulic  system  were  yield- 
ing $5,000,000  to  $8,000,000  in  their  best  years.  The  in- 
junction operated  only  against  such  companies  as  would 
not  or  could  not  keep  their  debris  or  tailings  from  passing 
into  navigable  streams.  Hydraulic  mining  is  still  carried 
on  in  California,  yielding  of  late  years  over  $1,000,000  per 
annum. 

On  account  of  its  prominence  as  a  bullion  producer, 
Nevada  County  has  shown  up  well  in  the  disbursement  of 
mining  profits.  The  gross  amount  of  these  dividends,  if  it 
could  be  given,  would  be  a  revelation  to  many.  The  writer 
has  a  partial  record  of  a  few  of  these  mines.  This  record 
of  the  Eureka  mine  from  1867  to  1878,  both  years,  shows 
a  total  of  $1,999,000.  From  the  start  these  dividends  were 
paid  with  great  regularity,  and  did  much  to  encourage 
operations  in  other  mines  in  the  same  county.  Robert 
Watt,  afterwards  banker,  bank  commissioner,  and  whole- 
sale merchant,  was  a  director  in  the  Eureka  mine. 


The  West  the  Best  and  California  the  Best  of  the  West.  49 

Probably  the  best  gold  producer  in  Nevada  County,  if 
not  the  best  in  the  State  of  California,  was  the  Idaho  mine, 
which  joined  the  Eureka.  For  the  number  of  years  it  was 
in  operation  and  the  profits  it  returned  to  the  owners,  the 
Idaho  is  certainly  entitled  to  that  rank.  In  view  of  what 
it  has  produced  and  its  proximity  to  the  Eureka  mine,  it 
is  remarkable  that  its  importance  was  overlooked  by  the 
Eureka  owners,  when  it  could  have  been  purchased  at  a 
very  low  figure,  and  thus  added  so  much  to  the  life  of 
the  Eureka. 

The  Idaho  mine  had  a  good  quantity  of  gold  quartz 
near  the  surface,  but  this  was  soon  exhausted.  Further 
operations  for  some  time  were  discouraging  and  unprofit- 
able, and  at  last  became  so  unbearable  that  the  owners 
gladly  accepted  the  proposition  of  Edward  and  John  C. 
Coleman  to  take  hold  of  the  enterprise  for  further  develop- 
ment. It  was  not  long  after  this  new  arrangement  had 
been  effected  that  a  new  and  important  ledge  was  opened 
that  furnished  a  good  supply  of  gold  for  many  years. 

On  the  incline  these  operations  extended  to  a  depth  of 
2,500  feet,  running  close  up  to  the  line  of  the  Maryland. 
At  this  juncture  the  mine  was  sold  to  the  Maryland  Min- 
ing Company  for  $80,000,  which  was  supposed  to  be  about 
the  net  value  of  the  ore  yet  remaining  in  the  Idaho  mine. 

In  round  numbers,  the  Idaho  mine  produced  $11,500,000 
in  gold  and  paid  dividends  of  $4,500,000.  The  original 
capital  was  $39,000,  invested  in  a  fifteen-stamp  quartz  mill 
and  an  up-to-date  hoisting  works. 

At  least  a  dozen  other  mines  in  the  same  county  have 
disbursed  from  $100,000  to  over  $1,000,000.  These  are  all 
quartz  mines. 

Amador  County  has  furnished  several  good  dividend 
paying  mines.  From  1867  to  1888,  inclusive,  the  Amador 
mine   under  its  two   names   paid  $1,027,450   in   dividends. 


50  The  West  the  Best  and  California  the  Best  of  the  West. 

From  1883  to  1888,  inclusive,  the  Plymouth  Con.  paid  $2,- 
285,000.  From  1894  to  1901,  inclusive,  the  Kennedy  mine 
is  estimated  to  have  paid  $1,825,000  in  dividends. 

Calaveras  County  has  developed  some  good  paying 
mines,  but  the  owners  never  gave  much  publicity  to  the 
profits  received.  The  Utica  mine  in  that  county  was  a 
large  producer  of  gold  in  its  best  years. 

Mono  County  astonished  the  public  in  1878.  No  one 
had  expected  that  much  bullion  would  ever  be  developed 
there,  so  when  the  announcement  of  a  gold  discovery  was 
wired  it  was  a  pleasant  surprise.  In  August  of  that  year 
the  first  dividend  of  $50,000  was  paid.  This  was  at  the 
rate  of  $1  per  share.  Before  this  dividend  was  paid  a 
second  one  of  $2  per  share  was  announced,  and  this  was 
followed  before  the  end  of  the  month  with  one  of  $5  per 
share,  so  that,  instead  of  $50,000  for  August,  1878,  the 
amount  was  $400,000.  Of  course,  the  Street  went  wild 
over  such  munificence.  The  Bodie  paid  $750,000  in  1878, 
and  from  1878  to  1886,  inclusive,  the  total  was  $1,502,700. 
Since  then  other  dividends  have  been  paid  by  the  same 
mine.  The  Bulwer  mine  in  the  same  county  paid  $175,000 
between  1881  and  1884. 

Mono  County  had  still  another  surprise  for  the  public 
in  the  development  of  the  Standard  Con.  mine.  The  first 
dividend  by  the  Standard  was  paid  in  September,  1877,  at 
the  rate  of  $1  per  share,  or  $50,000.  From  1877  to  1889, 
inclusive,  these  dividends  amounted  to  $4,695,000.  Since 
then  other  dividends  have  been  paid,  making  a  total  of 
$5,229,800  to   date. 

Other  California  mines  that  paid  dividends  from  1894 
to  1910,  inclusive,  were  as  follows:  Argonaut,  $1,200,000 
in  1898  to  1910;  Champion,  $150,000;  Gwin,  $277,000; 
Morning  Star,  $474,000;  Mead,  $160,000;  Modoc,  $275,000, 
and  Yellow  Aster,  $392,000.     The  dividends  by  the   Gwin, 


The  West  the  Best  and  California  the  Best  of  the  West.  51 

Mead,  Modoc  and  Yellow  Aster  were  all  paid  in  the  last 
four  years  of  that  interval.  The  Champion  and  Morning 
Star  mines  paid  some  dividends  previous  to  1894.  It  is 
possible  that  some  of  the  mines  mentioned  have  also  paid 
dividends  since  1901.  The  Yellow  Aster  paid  $120,000  in 
1912,  making  a  total  in  seventeen  years  of  $1,111,879. 

The  writer  has  a  partial  record  of  the  dividends  by 
several  other  California  mines  in  the  early  years  of  cor- 
porate enterprise,  as  well  as  in  some  of  the  years  of  the 
last  decade  of  the  last  century.  In  that  decade  the  number 
of  California  mines  paying  dividends  varied  from  fifteen 
to  twenty-five.  These  figures  are  exclusive  of  the  divi- 
dends of  the  quicksilver  and  copper  rnines  of  the  State. 
The  dividends  of  the  gold  and  silver  mines  of  California 
from  1894  to  1901,  inclusive,  exceed  $6,000,000. 

Dredg-e  Mining  in  California. 

For  many  years  mining  operations  have  been  carried 
on  in  over  thirty-five  counties  in  California.  In  many  of 
these  counties  the  gold  and  silver  product  has  been  quite 
small.  Over  two-thirds  of  the  yield  has  been  credited  to 
less  than  a  dozen  counties,  most  of  which  cover  the  mother 
lode,  which  runs  from  south  to  north  through  the  State. 
Indeed,  that  is  the  general  trend  of  the  precious  metals 
belt  from  South  America  to  the  northern  boundary  of 
Alaska  and  even  beyond  into  the  Yukon  Territory  under 
the  control  of  Great  Britain. 

The  principal  producing  counties  in  California  of  late 
years  have  been  Nevada,  Amador,  Butte,  Calaveras,  Kern, 
Tuolumne,  Shasta,  Siskiyou,  Placer  and  Trinity.  As  to 
quartz  mining,  Nevada  County  has  held  the  lead  for  many 
years,  and  still  holds  that  record,  though  in  1910  Amador 
was  slightly  ahead.  Trinity  County  led  in  hydraulic  min- 
ing in  1910,  Placer  County  in  di-ift  and  Yuba  County  in 


52  The  West  the  Best  and  California  the  Best  of  the  West. 

dredge  mining.  Previous  to  that  year,  Butte  County  held 
first  place  in  dredge  mining. 

This  last  named  form  of  mining  is  the  latest  introduced 
into  the  California  system,  and  is  said  to  have  been  bor- 
rowed from  New  Zealand.  It  is  true  experiments  in  that 
form  of  mining  were  on  trial  over  forty  years  ago  in  some 
parts  of  the  State,  but  the  results  were  too  meagre  to 
attract  any  attention  until  1898,  and  even  then  the  amount 
was  too  small  to  receive  classification  in  the  official  reports. 

In  1900  the  amount  credited  to  dredge  mining  in  Cali- 
fornia was  $200,000.  Two  years  later  it  was  $800,000.  In 
1894,  the  amount  was  over  $2,000,000,  when  there  were 
forty  machines  in  operation.  In  1906  the  total  was  over 
$5,000,000.  Since  that  year  there  have  been  further  addi- 
tions from  year  to  year,  though  the  annual  gains  have 
been  much  smaller.  The  total  amount  of  gold  produced 
by  the  California  dredgers  to  close  of  1911,  according  to 
Charles  G.  Yale,  is  $47,985,200. 

The  principal  deposits  worked  by  the  dredgers  in  Cali- 
fornia are  along  the  banks  of  the  American,  Feather  and 
Yuba  Rivers,  in  Sacramento,  Butte  and  Yuba  Counties. 
Oroville,  in  Butte  County,  was  the  first  section  to  show 
up  good  results  in  this  form  of  mining,  and  Butte  County 
immediately  took  the  lead  and  held  it  until  two  years  ago, 
when  Yuba  County  showed  the  largest  product. 

These  deposits  are  so  far  below  the  surface  that  they 
can  be  mined  in  no  other  way.  These  machines  go  down 
60  feet  and  some  have  been  built  to  operate  at  a  depth  as 
low  as  75  feet  from  the  source.  Good  orchard  and  vine- 
yard land  has  been  turned  over  to  the  dredgers  for  a 
consideration.  The  area  available  for  gold  mining  by 
dredgers  was  estimated  a  few  years  ago  at  50,000  acres, 
which  were  thought  to  contain  from  $200,000,000  to  $300,- 
000,000  in  gold.    In  1902  placer  mining  in  its  various  forms 


The  West  the  Best  and  California  the  Best  of  the  West.  53 

contributed  24  per  cent  of  the  total  product  of  gold  and 
silver  in  California,  while  in  1911,  the  proportion  was  45 
per  cent,  the  increase  being  largely  due  to  dredge  mining. 

As  California  was  the  first  section  in  the  United  States 
to  produce  gold  in  any  considerable  quantity,  an  exhibit 
showing  its  annual  yield  from  1848  to  1912,  both  years 
inclusive,  as  compared  with  the  combined  product  of  all 
other  sections  of  the  country,  will  bring  out  the  importance 
of  the  discovery  of  gold  in  that  State  in  January,  1848,  as 
mere  words  cannot  describe.  This  is  done  in  the  accom- 
panying tabular  statement. 

In  the  first  twelve  years  after  that  discovery  California 
practically  had  full  control  of  the  gold  mining  industry  in 
the  western  end  of  the  country.  Its  only  competitors  in 
that  field,  so  far  as  the  Government  reports  show,  were 
"Virginia,  North  and  South  Carolina,  Georgia,  Alabama  and 
Tennessee.  The  combined  product  of  these  six  States  for 
those  twelve  years  is  separately  shown  in  the  tables.  In 
the  subsequent  years  down  to  1912  the  gold  product  of 
these  Eastern  States  is  included  with  the  product  of  all  the 
Western  States  and  Territories,  exclusive  of  California, 
which  is  given  separately. 

The  liberal  supply  of  gold  in  California  led  to  the  agita- 
tion of  a  Mint  for  coining  the  same.  Congress  soon  re- 
sponded to  the  demand,  and  the  Mint  was  opened  for 
coinage  in  April,  1854.  It  is  deemed  appropriate  in  this 
connection  to  show  the  annual  operations  of  this  institu- 
tion in  the  coinage  of  gold  and  silver.  The  annexed  table 
covers  the  American  gold  product  and  the  coinage  of  the 
United  States  Mint  in  San  Francisco,  as  follows: 


54 


The  West  the  Best  and  California  the  Best  of  the  West. 


GOLD    PRODUCT    AND    COINAGE 

(In  One  Thousand  Dollar  Amounts) 


American  Gold  Product 

Coinage  U.  S.  Mint, 
San  Francisco 

Other 

Years 

California 

States 

Total 

Gold 

Silver 

Total 

1848 

S10,000 
40,000 
50,000 

$  851 
892 
657 

$10,851 
40,892 
50,657 

1849 

1850 

1851 

55,000 
60,000 

601 
711 

55,601 
60,711 

1852 

1853 

65,000 

486 

65,486 

1854 

60,000 

323 

60,323 

'  $'  4,084 

$  4',  084 

1855 

55,000 

362 

55,362 

18,008 

""$164 

18,172 

1856 

55,000 

326 

55,326 

25,306 

184 

25,490 

1857 

55,000 

142 

55,142 

20,327 

100 

20,427 

1858 

50,000 

349 

50,349 

17,158 

274 

17,432 

1859 

50,000 

356 

50,356 

12,918 

329 

13,247 

1860 

45,000 

1,000 

46,000 

11,178 

264 

11,442 

1861 

40,000 

3,000 

43,000 

15,665 

511 

16,176 

1862 

34,700 

4,500 

39,200 

17,276 

711 

17,987 

1863 

30,000 

10,000 

40,000 

19,543 

479 

20,022 

1864 

26,600 

19,500 

46,100 

15,918 

362 

16,280 

1865 

28,500 

24,725 

53,225 

21,214 

371 

21,585 

1866 

25,500 

28,000 

53,500 

17,362 

554 

17,916 

1867 

25,000 

26,725 

51,725 

18,720 

630 

19,350 

1868 

22,000 

26,000 

48,000 

17,230 

644 

17,874 

1869 

22,500 

27,000 

49,500 

14,028 

404 

14,432 

1870 

25,000 

25,000 

50,000 

19,848 

507 

20,355 

1871 

20,000 

23,500 

43,500 

18,905 

1,137 

20,042 

1872 

19,000 

17,000 

36,000 

16,000 

381 

16,381 

1873 

17,000 

19,000 

36,000 

21,154 

921 

22,075 

1874 

17,500 

16,000 

33,500 

24,460 

2,868 

27,328 

1875 

17,617 

15,783 

33,400 

24,674 

7,395 

32,069 

1876 

17,000 

22,900 

39.900 

32.022 

10,682 

42,704 

1877 

15,000 

31,900 

46,900 

35,092 

14,680 

49,772 

1878 

15,300 

35,900 

51,200 

36,209 

13,977 

50,186 

1879 

16,000 

22,900 

38,900 

28,956 

9,110 

38,065 

1880 

17,500 

18,500 

36,000 

28,527 

8,900 

37,427 

1881 

18,200 

16,500 

34,700 

29,085 

12,760 

41,845 

1882 

16,300 

16,200 

32.500 

28,665 

9,250 

37.915 

1883 

14,120 

15,880 

30,000 

24,576 

6,250 

30,826 

1884 

13,600 

17,200 

30,800 

20,447 

3,257 

23,704 

1885 

12,700 

19,100 

31,800 

22,007 

1,501 

23,508 

1886 

14,725 

20,275 

35.000 

24,600 

771 

25,371 

The  West  the  Best  and  California  the  Best  of  the  West. 


55 


GOLD    PRODUCT    AND    COINAGE— (Continued) 

(In  One  Thousand  Dollar  Amounts) 


American  Gold  Product 

Coinage  U.  S.  Mint, 

San  Francisco 

Other 

Years 

California 

States 

Total 

Gold 

Silver 

Total 

1887 

$13,400 

$19,600 

$33,000 

$23,390 

$2,216 

$25,606 

1888 

12,750 

20,425 

33,175 

25,148 

1,133 

26,281 

1889 

13,000 

19,800 

32,800 

19.748 

797 

20,545 

1890 

12,500 

20,345 

32,845 

16,055 

8,373 

24,428 

1891 

12,600 

20,575 

33.175 

25.762 

6,170 

31,932 

1892 

12,000 

21,000 

33,000 

21,250 

2,055 

23,305 

1893 

12,680 

23,275 

35,955 

22,457 

1,083 

23,540 

1894 

13,570 

25,930 

39,500 

21,500 

3,947 

25,447 

1895 

14,929 

31,681 

46,610 

23,920 

1,507 

25,427 

1896 

15,236 

37,852 

53,088 

30,093 

5,675 

35,768 

1897 

14,618 

42,745 

57,363 

33,522 

6,562 

44,084 

1898 

15,638 

48,825 

64,463 

63,226 

5,707 

68,933 

1899 

15,198 

55,855 

71,053 

56,341 

3,769 

60,110 

1900 

15,816 

63,355 

79,171 

51,645 

5,802 

57,447 

1901 

16,891 

61,776 

78,667 

78,287 

2,785 

81,072 

1902 

16,792 

63,208 

80,000 

44,463 

2,848 

47,311 

1903 

16,104 

57,488 

73,592 

33,735 

2,522 

36,257 

1904 

18,995 

61,470 

80,465 

103,168 

2,661 

105,829 

1905 

19,197 

68,984 

88,181 

44,356 

2,404 

46,760 

1906 

18,833 

75,541 

94,374 

48,875 

1,184 

50,059 

1907 

16,854 

73,582 

90,436 

45,421 

1,283 

46,704 

1908 

19,330 

75,230 

94,560 

1,448 

1,340 

2,788 

1909 

20,704 

78,969 

99,673 

59.908 

1,319 

61,227 

1910 

20,441 

75,828 

96,269 

54,526 

1,098 

55,624 

1911 

20,311 

75,923 

96,234 

23,105 

1,235 

24,340 

1912 

19,988 

71,297 

91,285 

4,960 

1,104 

6,064 

Total .  .  . 

$1,609,737 

$1,820,603 

$3,430,340  $1,677,477 

$186,901 

$1,864,378 

It  will  be  noticed  that  the  gold  product  of  California 
from  1848  to  1912,  both  years  inclusive,  was  nearly  as 
large  as  the  combined  gold  product  of  all  other  sections 
of  the  country  for  the  same  period. 

It  will  be  further  noticed  that  the  gold  coinage  of  the 
United  States  Mint  in  San  Francisco  to  the  close  of  1912 
was  larger  than  the  entire  gold  product  of  California. 

It  is  not  generally  known,  but  it  is  nevertheless  true, 


56  The  West  the  Best  and  California  the  Best  of  the  West. 

that  the  United  States  Mint  in  San  Francisco,  poorly  equip- 
ped as  it  was  prior  to  the  occupation  of  the  present  quar- 
ters on  Fifth  and  Mission  streets,  in  1875,  has  coined  more 
than  one-half  of  all  the  gold  coined  in  the  United  States 
from  the  establishment  of  the  first  Mint  at  Philadelphia 
in  1793  down  to  1910. 

The  gold  coinage  of  all  the  Government  Mints  in  the 
United  States  to  the  close  of  1910  was  $3,215,337,588,  of 
which  sum  the  United  States  Mint  in  San  Francisco  coined 
$1,649,412,407. 

In  one  thousand  dollar  amounts,  the  descriptions  em- 
braced in  these  totals  were  as  follows: 

San  Francisco    All  U.  S.  Mints 

Double  Eagles $1,386,416  $2,313,590 

Eagles 135,134  486,205 

Half  Eagles 125,725  357,954 

Three  Dollars 186  1,619 

Quarter  Eagles 1,861  36,160 

Dollars 90  19,809 

Total $1,649,412  $3,215,337 

Holding  such  a  position  in  the  Mint  system  of  the 
country,  it  is  difficult  to  realize  any  good  reason,  or  any 
kind  of  a  reason,  for  the  recent  attempt  to  eliminate  the 
coinage  authority  of  the  United  States  Mint  in  this  city. 
It  is  no  wonder  that  this  attempt  was  strongly  opposed 
and  bitterly  denounced  by  the  friends  of  this  institution. 
Its  coinage  record  is  without  a  peer  in  this  or  any  other 
country.  In  1904  this  Mint  coined  $103,168,500  in  gold. 
With  one  exception,  which  occurred  the  same  year,  this 
is  the  largest  amount  coined  in  any  one  year.  The  Phila- 
delphia Mint  coined  $129,144,400  in  the  same  year.  The 
total  gold  coinage  for  that  year  was  $233,402,400.  There 
was  an  exceptional  reason  for  the  heavy  coinage  that  year. 
The  coinage  of  the  double  eagle  and  the  gold  dollar  was 
a  concession  to  the  discovery  of  gold  in  California  in  1848. 


The  West  the  Best  and  California  the  Best  of  the  West.  57 

Both  of  these  coins  were  authorized  by  an  Act  of  Congress 
on  March  3,  1849.  The  coinage  of  the  gold  dollars  was 
authorized  to  be  discontinued  in  September,  1890.  As 
souvenirs  of  the  most  important  gold  discovery  yet  made 
in  the  United  States,  these  coins  will  be  treasured  by  their 
possessors. 

The  United  States  Mint  in  San  Francisco  has  been  a 
most  valuable  asset  to  the  Pacific  Coast,  apart  from  the 
benefit  it  has  been  to  the  gold  bullion  producers.  Its  pres- 
ence and  the  supply  of  the  raw  material  California  was 
able  to  furnish  it  did  much  to  bring  the  country  to  sound 
money  conditions  in  later  years. 

States  Credited  for  Precious  Metals. 

It  is  to  be  regretted  that  the  officials  did  not  take  as 
much  pains  in  compiling  the  gold  and  silver  product  of  the 
other  Pacific  States  and  Territories  as  it  did  in  the  case  of 
California.  A  reason  for  this  in  the  early  years  was  the 
apprehension,  no  doubt,  that  the  discovery  of  these  deposits 
might  not  amount  to  much,  and  therefore  it  was  not  worth 
while  to  collate  the  facts  in  the  case.  This  was  the  view 
some  people  took  of  mining  in  California,  but  the  sudden 
expansion  of  the  product  forced  the  recognition  of  its  im- 
portance almost  from  the  start. 

It  was  in  1883  that  Congress  called  the  attention  of  the 
Mint  authorities  to  the  desirability  of  classifying  by  States 
and  Territories  the  sources  of  the  gold  and  silver  product 
of  the  country.  There  was  a  prompt  reply  to  this  request, 
but  the  publication  of  such  statistics  was  not  retroactive, 
further  than  to  make  a  beginning  with  the  year  1881. 
Since  then  the  publication  of  such  statistics  has  been  made. 
Previous  to  1881,  the  Mint  authorities  had  a  general 
record  of  the  precious  metals  produced  in  the  United 
States  from  the  first  domestic  gold  received  at  the  Mint 


58  The  West  the  Best  and  California  the  Best  of  tfie  West. 

in  1804.  This  lot  of  bullion  came  from  North  Carolina, 
and  the  estimate  from  that  source  for  the  first  twenty 
years  was  $47,000.  In  1829  Virginia  and  South  Carolina 
became  producers  of  the  metal  on  a  small  scale.  Georgia 
became  a  producer  in  the  following  year  and  Alabama  and 
Tennessee  made  a  beginning  in  1831. 

From  1804  to  1847,  both  years  inclusive,  the  gold  mines 
in  these  six  Southern  States  are  credited  with  a  combined 
product  of  $12,784,000.  Since  1848  the  gold  product  from 
these  Eastern  States  has  been  combined  with  that  from 
other  States,  as  noted  in  the  tabular  statement  already 
given  on  another  page. 

Through  the  courtesy  of  Hon.  George  E.  Roberts,  Direc- 
tor of  the  Mint,  the  writer  has  been  furnished  with  a 
detailed  statement  of  the  gold  product  of  the  mines  in  the 
Southern  States  to  the  close  of  1879.  This  shows  a  grand 
total  of  $21,586,500.  The  principal  contributors  to  this 
total  were  North  Carolina  and  Georgia,  the  former  being 
credited  with  $10,528,500  and  the  latter  with  $7,425,200. 
Virginia  and  South  Carolina  contributed  over  $3,000,000 
of  the  remainder,  which  was  about  equally  divided  between 
them.  As  already  remarked,  the  bullion  produced  by  these 
Southern  States  since  1848  is  included  in  the  total  under 
the  head  of  other  States. 

It  is  in  order  at  this  point  to  give  the  gold  and  silver 
product  of  the  United  States  from  1881  to  1912,  both  years 
inclusive,  by  States  and  Territories.  This  is  as  far  back 
as  a  statement  of  this  kind  can  be  carried  with  any  assur- 
ance of  approximate  accuracy.  The  product  of  the  South- 
ern States  in  this  statement  is  included  in  that  of  other 
States  not  specifically  mentioned.  The  information  has 
been  compiled  from  the  reports  of  the  Director  of  the 
Mint,  and  is  as  follows: 


The  West  the  Best  and  California  the  Best  of  the  West. 


59 


PRECIOUS  METAL  STATES 

(In  One  Thousand  Dollar  Amounts) 


Calendar 

Years 

Alaska 

Arizona 

Calif( 

irnia 

Gold 

Silver 

Gold 

Silver 

Gold 

Silver 

1881 

$  15 

$1,060 

$7,300 

$18,200 

$  750 

1882 

150 

1,065 

7,500 

16,800 

845 

1883 

300 

950 

5,200 

14,120 

1,460 

1884 

200 

930 

4,500 

13,600 

3,000 

1885 

300 

$  2 

880 

3,800 

12,700 

2,500 

1886 

446 

2 

1,110 

3,400 

14,725 

1,400 

1887 

675 

830 

3,800 

13,400 

1,500 

1888 

850 

3 

871 

3.000 

12,750 

1,400 

1889 

900 

10 

900 

1,939 

13.000 

1,034 

1890 

762 

10 

1,000 

1,293 

12,500 

1,164 

1891 

900 

10 

975 

1,914 

12,600 

970 

1892 

1,000 

10 

1,070 

1,502 

12,000 

507 

1893 

1,010 

12 

1,184 

3,795 

12,680 

608 

1894 

1,114 

29 

1,784 

1,483 

13,570 

928 

1895 

1,615 

87 

1,965 

1,276 

14,929 

845 

1896 

2,056 

188 

2,604 

2,473 

15,236 

777 

1897 

1,778 

150 

2,896 

2,896 

14,618 

613 

1898 

2,525 

119 

2,465 

2,905 

15,638 

830 

1899 

5,459 

181 

2,566 

2,041 

15,198 

1,066 

1900 

8,171 

95 

4,193 

3,873 

15,816 

1,217 

1901 

6,886 

29 

4,083 

1,687 

16,891 

555 

1902 

8,346 

49 

4,112 

1,613 

16,792 

477 

1903 

8,615 

78 

4,358 

1,829 

16,104 

503 

1904 

9,160 

115 

3,344 

1,592 

18,995 

836 

1905 

14,926 

103 

2,691 

1,589 

19,197 

660 

1906 

21,365 

138 

2,747 

2,010 

18,833 

1,027 

1907 

18,489 

118 

2,664 

1,916 

16,853 

1,049 

1908 

19,859 

109 

2,500 

1,551 

19,330 

911 

1909 

20,340 

103 

2,627 

1,312 

20,703 

1,199 

1910 

16,272 

83 

3,413 

1,434 

20,441 

967 

1911 

16,003 

152 

2,955 

877 

20,311 

1,500 

1912 

17,399 

314 

3,303 

2,104 

19,988 

765 

Total .  .  . 

$207,886 

$2,299 

$70,095 

$85,404 

$508,518 

$33,863 

60 


The  West  the  Best  and  California  the  Best  of  the  West. 


PRECIOUS  METAL  STATES 

(In  One  Thousand  Dollar  Amounts) 


Calendar 
Year 

Colo 

rado 

Idaho 

Mon 

tana 

Gold 

Silver 

Gold 

Silver 

Gold 

Silver 

1881 

$  2,800 

$17,160 

$1,700 

$1,300 

$2,330 

$2,630 

1882 

3,360 

16,500 

1,500 

2,000 

2,550 

4,370 

1883 

4,100 

17,370 

1,400 

2,100 

1,800 

6,000 

1884 

4,250 

16,000 

1,250 

2,720 

2.170 

7,000 

1885 

4,200 

15,800 

1,800 

3,500 

3,300 

10,060 

1886 

4,450 

16,000 

1,800 

3,600 

4,425 

12,400 

1887 

4,000 

15,000 

1,900 

3,000 

5,230 

15,500 

1888 

3,758 

19,000 

2,409 

3,000 

4,200 

17,000 

1889 

3,500 

20,687 

2,000 

4,396 

3,500 

19,304 

1890 

4,150 

24,307 

1,850 

4,784 

3,300 

20,364 

1891 

4,600 

27,358 

1,680 

5.217 

2,890 

21,139 

1892 

5,300 

34,434 

1,721 

4,475 

2,891 

24,616 

1893 

7,527 

33,407 

1,646 

5,056 

3,076 

21,858 

1894 

9,492 

30,101 

2,081 

4,252 

3,651 

16,576 

1895 

13,305 

30,253 

1,780 

4,022 

4,101 

22,716 

1896 

14,911 

29,185 

2,155 

6,659 

4,325 

21,640 

1897 

19,104 

27,974 

1,702 

6,337 

4,373 

20,258 

1898 

23,195 

29,499 

1,717 

6,560 

5,127 

19,145 

1899 

25,983 

29,302 

1,889 

4,980 

4,760 

20,811 

1900 

28,829 

26,484 

1,725 

8,312 

4,698 

18,354 

1901 

27,693 

11,603 

1,869 

3,327 

4,744 

7,457 

1902 

28,469 

8.308 

1,475 

3,103 

4,374 

7,019 

1903 

22,540 

7,015 

1,570 

3,514 

4,412 

6,827 

1904 

24,396 

8,312 

1,504 

4,530 

5,098 

8,473 

1905 

25,701 

7,895 

1,076 

4,957 

4,889 

8,207 

1906 

22,934 

8,426 

1,036 

5,981 

4,522 

8,488 

1907 

20,898 

7,587 

1,255 

5,206 

3,473 

7,346 

1908 

22,871 

5,429 

1,443 

4,043 

3,160 

5,540 

1909 

21,846 

4,600 

1,344 

3,513 

3,750 

6,258 

1910 

20,527 

4,602 

1,036 

3,794 

3,720 

6,633 

1911 

19,154 

4,142 

1,169 

4,129 

3,170 

6,114 

1912 

18,792 

5,080 

1,304 

4,686 

3,235 

7,506 

Total .  .  . 

$466,635 

$558,819 

$51,786 

$137,052 

$121,244 

$407,608 

The  West  the  Best  and  California  the  Best  of  the  West.  61 


PRECIOUS  METAL  STATES 

(In  One  Thousand  Dollar  Amounts) 


Calendar 
Years 

Nevi 

ida 

New  M 

exico 

Oregon 

Gold 

Silver 

Gold 

Silver 

Gold 

Silver 

1881 

$2,250 

$7,060 

$  185 

$  275 

$1,100 

$  50 

1882 

2,000 

6,750 

150 

1,800 

830 

35 

1883 

2,520 

5,430 

280 

2,845 

660 

20 

1884 

3,000 

5,600 

300 

3,000 

660 

20 

1885 

3,100 

6,000 

800 

3,000 

800 

10 

1886 

3,000 

5,000 

400 

2,300 

990 

5 

1887 

2,500 

4,900 

.   500 

2,300 

800 

10 

1888 

3,525 

7,000 

602 

1,200 

825 

15 

1889 

3,000 

6,206 

1,000 

1,461 

1,100 

39 

1890 

2,800 

5,754 

850 

1,681 

1,100 

97 

1891 

2,050 

4,551 

905 

1,713 

1,640 

297 

1892 

1,571 

3,173 

950 

1,521 

1,400 

70 

1893 

958 

2,018 

913 

593 

1,645 

15 

1894 

1,138 

1,358 

568 

817 

1,422 

34 

1895 

1,552 

1,236 

492 

898 

888 

66 

1896 

2,468 

1,356 

476 

889 

1,251 

79 

1897 

2,976 

1,589 

356 

698 

1,353 

89 

1898 

2,994 

1,041 

539 

550 

1,178 

168 

1899 

2,219 

1,090 

584 

651 

1,429 

174 

1900 

2,006 

1,757 

832 

562 

1,695 

149 

1901 

2,964 

1,088 

688 

338 

1,818 

96 

1902 

2,895 

1,986 

531 

242 

1,817 

49 

1903 

3,388 

2,727 

245 

98 

1,290 

64 

1904 

4,308 

1,563 

382 

124 

1,310 

77 

1905 

5,359 

3,577 

266 

217 

1,245 

54 

1906 

9,279 

3,525 

266 

307 

1,320 

61 

1907 

15,411 

5,465 

530 

396 

1,222 

64 

1908 

11,689 

5,086 

306 

214 

906 

30 

1909 

16,386 

5,262 

253 

169 

829 

36 

1910 

18,874 

6,678 

477 

421 

681 

24 

1911 

18,969 

5,858 

640 

628 

599 

38 

1912 

13,332 

7,933 

605 

761 

631 

48 

Total .  .  . 

$170,981 

$129,597 

$16,671 

$32,669 

$36,434 

$2,093 

62 


The  West  the  Best  and  California  the  Best  of  the  West. 


PRECIOUS  METAL  STATES 

(In  One  Thousand  Dollar  Amounts) 


Calendar 

South  Dakota 

Texas 

Utah 

Gold 

Silver 

Gold 

Silver 

Gold 

Silver 

1881 

$4,500 
3,300 
3,200 
3,300 
3,200 
2,700 
2,400 
2,600 
2,900 
3,200 
3,550 
3,700 
3,506 
3,299 
3,869 
4,970 
5,695 
5,700 
6.470 
6,178 
6,479 
6,965 
6,827 
7,024 
6,914 
6,605 
4,138 
7,742 
6,573 
5,380 
7,430 
7,796 

$  70 
175 
150 
150 
100 
425 
540 
100 
65 

$   145 

190 

140 

120 

180 

216 

220 

290 

500 

680 

650 

660 

853 

868 

1,373 

1,900 

1,726 

2,285 

3,451 

3,972 

3,690 

3,594 

3,697 

4,215 

5.141 

5,131 

5,122 

3,947 

4,213 

4,313 

4,710 

4,377 

$  6,400 

1882 

• 

6,800 
5,620 
6,800 
6  750 

1883 

1884 

1885 

1886 

6,500 

7,000 

7,000 

9,050 

10,343 

11,313 

10,978 

1887 

1888 

1889 

$  300 
387 
485 
424 
451 
555 
582 
679 
523 
611 
672 
617 
283 
237 
245 
272 
255 
188 
202 
239 
212 
197 
243 
257 

1890 

129 
129 

1891 

1892 

75 
181 

76 
206 
297 
191 
191 
188 
693 

47 
180 
119 
108 
109 
105 

70 
105 
102 

65 
113 
122 

1893 

9,304 

1894 

7,618 

1895 

9,656 

1896 
1897 
1898 

%   8 
7 

11,414 
8,101 
8,386 

1899 
1900 
1901 
1902 

7 
1 
1 

9,171 

11,982 

6,284 

5,741 

1903 

6,046 

1904 
1905 
1906 
1907 
1908 

2 
2 
3 
1 

7,241 
6,295 
7,790 
7,529 
4,521 

1909 

5,487 

1910 

5,641 

1911 
1912 

1 
10 

6,974 

7,783 

Total .  .  . 

$158,110 

$5,376 

$43 

$9,116 

$72,559 

$247,517 

The  West  the  Best  and  California  the  Best  of  the  West. 


63 


PRECIOUS  METAL  STATES 

(In  One  Thousand  Dollar  Amounts) 


Calendar 

Washington 

Other  States 

Yearly 

Totals 

Years 

Gold 

Silver 

Gold 

Silver 

Gold 

Silver 

1881 

$120 

$295 

$   5 

$34,700 

$43,000 

1882 

120 

485 

25 

32  500 

^4K  '■"  '-^  y  ^^  ^^  ^^ 

46,000 

1883 

80 

450 

5 

^_^  *rf  ■  \j  \j  \_i 

30,000 

46,200 

1884 

85 

$"l 

435 

9 

30,800 

48,800 

1885 

120 

70 

421 

8 

31,800 

51,600 

1886 

147 

80 

460 

209 

35,000 

51,321 

1887 

150 

100 

431 

290 

33,000 

53,940 

1888 

145 

100 

342 

388 

33,175 

59,206 

1889 

163 

103 

392 

175 

32,800 

64,769 

1890 

204 

90 

449 

182 

32,845 

70,485 

1891 

335 

213 

400 

104 

33,175 

75,413 

1892 

374 

214 

378 

102 

33,010 

82,ior 

1893 

222 

197 

735 

81 

35,955 

77,576 

1894 

195 

146 

318 

47 

39,500 

64,000 

1895 

351 

159 

390 

50 

46,610 

72,051 

1896 

406 

355 

322 

78 

53,088 

76,069 

1897 

420 

138 

359 

80 

57,363 

69,637 

1898 

766 

329 

334 

44 

64,463 

70,384 

1899 

685 

331 

353 

149 

71,053 

70,807 

1900 

718 

290 

336 

148 

79,171 

74,533 

1901 

581 

261 

280 

73 

78,667 

33,128 

1902 

272 

328 

358 

83 

80,000 

29,415 

1903 

280 

159 

267 

98 

73,592 

29,322 

1904 

328 

87 

375 

125 

80,465 

33,456 

1905 

370 

73 

461 

237 

88,181 

34,222 

1906 

103 

28 

239 

183 

94,373 

38,256 

1907 

262 

55 

317 

298 

90,436 

37,300 

1908 

254 

46 

553 

225 

94,560 

28,051 

1909 

429 

39 

379 

163 

99,673 

28,455 

1910 

806 

111 

329 

206 

96,269 

30,854 

1911 

505 

78 

619 

940 

96,234 

31,788 

1912 

285 

157 

228 

427 

91,285 

37,943 

Total .  .  . 

$10,281 

$4,338 

$12,490 

$5,131 

$1,903,733 

$1,660,882 

64  The  West  the  Best  and  California  the  Best  of  the  West. 

Complete  Returns  Difficult. 

In  examining  the  reports  of  product  from  different  sec- 
tions for  the  same  years,  the  writer  has  observed  some  var- 
iance in  the  totals.  It  is  no  easy  matter  to  get  the  correct 
output  of  the  mines  composing  a  single  camp,  much  less 
a  State  or  Territory.  In  some  sections  a  tax  is  levied  on 
the  bullion  produced,  and  that  is  always  an  incentive  to 
understate  the  amount  made  public.  On  the  other  hand, 
motives  to  overstate  the  output  are  not  lacking.  Even  the 
Mint  authorities  are  sometimes  deceived.  But  they  have 
the  means  of  checking  up  the  gold  bullion  produced  to  some 
extent  at  least  in  the  amounts  conveyed  into  the  mints  and 
exported  from  the  country  in  bullion  form.  As  the  jQgures 
in  the  foregoing  statements  are  from  the  Mint  reports, 
they  are  probably  entitled  to  as  much  credence  as  those 
compiled  by  other  authorities. 

The  silver  product  from  the  several  sections  is  given  at 
its  coining  value  down  to  1900.  For  the  subsequent  years 
it  is  given  at  its  commercial  value,  the  average  price  in 
gold  per  ounce  for  the  year  reported.  As  the  number  of 
ounces  of  fine  silver  is  given  annually,  as  well  as  the  aver- 
age annual  value  of  fine  silver  in  gold,  it  is  an  easy  matter 
to  convert  the  product  for  any  one  year  into  its  coining  or 
market  value  as  may  be  desired  by  those  interested.  The 
coining  value  of  silver  is  $1.29.29  per  fine  ounce. 

Total  Product  of  American  Gold  and  Silver. 

It  was  not  until  1881  that  any  attempt  was  made  to  dis- 
tribute the  product  of  the  precious  metals  in  the  United 
States  among  the  several  States  and  Territories  producing 
the  same.  The  results  of  that  work  are  given  elsewhere  in 
the  five  tabular  statements.  The  product  of  some  of  the 
States  previous  to  that  year  was  given  in  a  mixed  form  of 
gold  and  silver.     Later  investigation  has  made  it  possible 


The  West  the  Best  and  California  the  Best  of  the  West.  65 

to  give  an  approximate  division  of  the  metals  during  that 
interval.  But  so  far  as  the  writer  is  aware  the  sources 
of  the  yield  for  the  years  prior  to  1874  have  not  been  made 
public. 

It  is  possible  that  there  are  sources  of  information  in 
different  localities  relating  to  such  product  in  various  sec- 
tions, but  unfortunately  it  is  not  available  to  the  general 
public,  and  hence  of  local  value  only. 

As  to  the  gross  amount  of  gold  and  silver  produced  in 
the  United  States  from  1804,  when  the  first  gold  of  Amer- 
ican product  was  sent  to  the  Mint,  down  to  the  close  of 
the  calendar  year  of  1912,  the  reports  of  Mint  officials 
probably  furnish  the  best  information.  Even  these  reports 
are  open  to  criticism,  but  until  some  one  can  furnish  more 
accurate  statistics,  the  public  will  have  to  be  satisfied  with 
them. 

A  compilation  of  these  annual  reports  of  the  Mint 
show  a  gross  gold  product  of  $3,448,820,000  and  a  gross 
silver  product,  based  on  its  coining  value,  of  $2,605,771,000. 
These  totals  cover  the  period  of  1804  to  1912,  both  years 
inclusive. 

With  the  best  information  available,  the  sources  of 
these  metals  for  those  one  hundred  and  nine  years  may  be 
approximately  apportioned  as  follows: 


66 


The  West  the  Best  and  California  the  Best  of  the  West. 


Sources 

Gold 

Silver 

Total 

Alaska  

$  207,892,000 

76,282,000 

1,609,737,000 

514,065,000 
76,049,000 

171,244,000 

331,141,000 
20,515,000 
76,434,000 

188,110,000 
43,000 
86,439,000 
16,481,000 
24,183,000 
50,205,000 

$  3,976,000 

124,403,000 

61,835,000 

740,576,000 

204,235,000 

527,094,000 

444,347,000 

44,710,000 

5,027,000 

8,118,000 

12,201,000 

407,075,000 

7,847,000 

6,401,000 

7,926,000 

$  211,868,000 

Arizona     

200,685,000 

California    

1,671,572,000 

Colorado   

1,254,641,000 

Idaho 

280,284,000 

Montana      

698,338,000 

Nevada 

775,488,000 

New  Mexico 

65,225,000 

Oregon 

81,461,000 

South  Dakota 

196,228,000 

Texas 

Utah    

12,244,000 
493,514,000 

Washington 

Other  Pacific  States .... 
Eastern  States     

24,328,000 
30,584,000 
58,131,000 

Totals 

$3,448,820,000 

$2,605,771,000 

$6,054,591,000 

It  is  proper  to  remark  that  the  amount  of  gold  credited 
to  Montana  in  the  above  table  does  not  include  the 
$200,000,000  which  some  parties  claimed  was  produced  in 
that  State  prior  to  1881,  while  admitting  that  no  statis- 
tics of  the  gold  yield  from  1862  to  1881  were  ever  collected. 

In  the  tables  of  precious  metals  from  1881  to  1912, 
as  distributed  among  the  various  States,  silver  is  given  at 
its  coining  value  to  the  year  1900,  inclusive,  and  subse- 
quently at  its  commercial  value,  or  its  gold  equivalent,  in 
accordance  with  the  rule  of  the  Mint  Director.  In  the 
summary  of  the  precious  metals,  as  distributed  among  the 
States  from  1804  to  1912,  for  the  sake  of  uniformity,  silver 
is  given  at  its  coining  value  of  $1.29.29  per  fine  ounce. 

The  difference  between  the  coining  and  market  value  of 
the  silver  product  for  that  entire  period  is  $937,628,000. 
That  is  what  free  silver  coinage  would  have  given  to  pro- 
ducers if  they  had  been  allowed  to  have  their  silver  coined 
as  they  did  previously  to  1873. 

It  is  doubtful  if  the  country  would  have  been  any  better 
off  if  their  wishes  in  this  respect  had  prevailed. 


The  West  the  Best  and  California  the  Best  of  the  West.  67 

California  as  a  Quicksilver  State. 

If  California  has  not  received  much  notoriety  as  a  pro- 
ducer of  silver,  this  lack  has  been  more  than  offset  by  its 
world-wide  reputation  as  the  producer  of  quicksilver.  Prior 
to  this  discovery,  the  world  depended  almost  entirely  on 
Spain  and  Austria  for  its  supply  of  this  metal.  The  most 
noted  quicksilver  mines  in  those  countries  were  the 
Almaden,  in  Spain,  and  the  Idria,  in  Austria. 

California  was  not  only  the  first  State  to  develop  a  mine 
of  this  character,  but  it  is  the  only  State  in  the  country 
to  produce  this  metal  in  any  considerable  quantity,  which 
is  only  one  of  the  several  unique  productive  features  of  the 
State. 

The  first  and  most  important  quicksilver  mine  of  Cali- 
fornia was  very  appropriately  named  the  New  Almaden. 
This  mine  is  in  Santa  Clara  County,  a  short  distance  from 
San  Jose.  It  put  its  first  product  on  the  market  in  1850,  and 
the  total  output  for  that  year  was  7723  flasks,  of  which 
6467  flasks  were  exported.  This  was  sold  at  from  $1.10  to 
$1.50  per  pound.  A  flask  of  quicksilver  contains  76^/^ 
pounds  of  the  metal,  so  that  a  flask  of  quicksilver  in  San 
Francisco  in  1850  was  sold  at  $84.15  to  $114.75.  The  metal 
rarely  sold  as  high  as  $1  per  pound  in  the  subsequent  years. 
It  sold  at  $1  in  1851  and  again  in  1859,  but  it  never  reached 
that  figure  again  in  the  San  Francisco  market  until  1873, 
when,  because  of  smaller  product,  there  were  sales  at  $1.20, 
and  in  the  following  two  years  some  lots  were  sold  at 
$1.55,  with  $1.20  and  65c  as  extreme  minimum  rates  for 
the  same  years. 

The  most  noteworthy  single  contract  for  quicksilver 
made  in  San  Francisco  for  use  in  the  Nevada  mines  was 
in  November,  1874,  when  there  was  an  agreement  effected 
for  the  delivery  of  400  flasks  monthly  for  one  year  at  $1.50 
per  pound,  equivalent  to  $114.75  per  flask. 


68  The  West  the  Best  and  California  the  Best  of  the  West. 

These  high  values  naturally  stimulated  the  search  for 
deposits  of  cinnabar  in  other  sections  of  California,  and 
many  of  these  were  subsequently  found,  both  north  and 
south  of  San  Francisco.  A  compilation  of  these  quicksilver 
mines  in  the  State,  made  by  J.  B.  Randol.  of  the  Quick- 
silver Mining  Company  of  New  York,  the  owners  of  the 
New  Almaden  mine,  in  Santa  Clara  County,  shows  that 
between  1850  and  1883  over  thirty  mines  had  contributed 
to  the  product  for  that  interval.  Eighteen  of  these  mines 
were  credited  with  a  gross  product  for  that  period  of  1,415 
to  794,000  flasks.  Ten  others  contributed  from  55  to  873 
flasks,  and  over  60,000  flasks  were  from  mines  the  names  of 
which  were  not  given.  The  total  product  for  that  period 
was  1,357,400  flasks.  The  New  Idria  was  second  in  the 
list,  with  a  yield  of  125,500  flasks,  and  there  were  seven 
other  mines,  with  a  total  product  of  over  10,000  flasks  each. 
At  the  head  of  those  in  that  list  was  the  Redington,  with 
a  credit  of  96,000  flasks.  Next  in  volume  of  production 
were  the  Sulphur  Bank,  73,500  flasks;  Guadalupe,  54,700; 
Western,  48,100;  Napa  Consolidated,  32,200;  Pope  Valley, 
18,100;  and  Great  Eastern,  10,300  flasks.  Since  1883  many 
of  the  thirty  mines  then  listed  have  dropped  out  of  the 
race,  but  several  new  sources  have  been  developed. 

When  the  first  search  for  cinnabar  deposits  in  California 
was  begun  is  not  definitely  known.  At  least,  one  authority 
says  it  was  in  1845,  or  three  years  previous  to  the  public 
announcement  of  the  gold  discovery.  The  parties  engaged 
in  that  particular  search  found  what  they  were  after  in 
the  Santa  Cruz  Mountains,  about  fifteen  miles  south  of  San 
Jose. 

This  was  not  only  a  good  find,  but  the  best  of  that 
character  yet  made  in  California.  The  deposit  was  named 
New  Almaden,  and  may  be  justly  placed  in  the  same  rank 
as  Spain's  foremost  quicksilver  mine  of  a  similar  name. 


The  West  the  Best  and  California  the  Best  of  the  West.  69 

It  required  some  time,  money  and  machinery  to  place 
the  mine  on  a  productive  basis.  There  was  little  difficulty 
in  securing  capital  for  that  purpose,  as  soon  as  the  merit 
of  the  deposit  became  known.  The  discovery  was  not  as 
important  as  the  one  Columbus  made  in  1492,  but  never- 
theless it  was  both  unique  and  important,  as  up  to  that 
time  the  country  had  been  obliged  to  get  supplies  of  that 
sort  from  foreign  sources. 

For  the  first  decade  of  active  operations,  the  New  Alma- 
den  controlled  the  local  market.  From  1850  to  1859  its 
product  was  242,944  flasks,  each  containing  76%  pounds 
of  quicksilver,  while  the  exports  for  the  same  interval  were 
184,448  flasks.  During  that  period  prices  varied  from  60c 
to  $1.50  per  pound,  but  the  average  was  about  75c.  At  this 
rate  the  exports  netted  $10,513,500.  The  annual  returns 
from  1850  to  1911  are  herewith  annexed: 


70     The  West  the  Best  and  California  the  Best  o 

f  the  West.                         } 

Years 

1    Product 

1    Exports 

1  Value  Exports      ■ 

18b0 

10,000 

9,347 

$   500,064 

1861 

35,000 

35,994 

1,511,790        : 

1862 

42,000 

33,747 

1,227,546        i 

1863 

40,531 

26,015 

1,079,622        ; 

1864 

47,489 

36,927 

1,694,949        ' 

1865 

53,000 

42,469 

1,950,245        ! 

1866 

46,550 

31,287 

1,087,703 

1867 

47,000 

28,854 

931,308 

1868 

47,728 

43,507 

1.330,054 

1869 

33,811 

24,365 

747,671 

1870 

30,077 

14,241 

489,954 

1871 

31,686 

16,340 

898,360 

1872 

31,621 

16,749 

1,099,110 

1873 

27,642 

10,557 

820,782 

1874 

27,756 

11,750 

1,247,554 

1875 

50,250 

37,852 

2,237,937 

1876 

75,074 

49,046 

1,956,664 

1877 

79,396 

52,624 

1,864,408 

1878 

63,880 

39,748 

1,387.501 

1879 

73,684 

63,106 

1,728,772 

1880 

59,926 

46,329 

1,389,141 

1881 

60,851 

45,798 

1,346,793 

1882 

52,732 

40,473 

1,174,539 

1883 

46,725 

37,887 

1,021,811 

1884 

31,913 

20,901 

627,030 

1885 

32,073 

21,730 

651,900 

1886 

29,981 

12,307 

430,535 

1887 

33,760 

24,100 

840,000 

1888 

33,250 

22,620 

848,250 

1889 

26,464 

18,078 

723,920 

1890 

22,926 

5,974 

304,866 

1891 

22,904 

14,559 

654,979 

1892 

27,993 

33,108 

1,489,860 

1893 

30,164 

29,721 

1,239,274 

1894 

30,416 

29,060 

926,170 

1895 

36,067 

31,131 

1,168,389 

1896 

30,765 

27,985 

965,778 

1897 

26,691 

23,438 

830,830 

1898 

31,092 

6,195 

227,450 

1899 

29,454 

10,075 

401,104 

1900 

26,317 

7,299 

341.548 

1901 

25,492 

4,874 

222,345 

1902 

26,184 

9,826 

423,830 

1903 

29,362 

16,721 

713,279 

1904 

36,218 

22,844 

918,649        , 

1905 

28,412 

15,783 

581,602 

1906 

26,176 

14,439 

556,411 

1907 

24,387 

11,784 

449,731 

1908 

19,360 

13,300 

590,750 

1909 

18,214 

10,152 

406,000 

1910 

18,562 

10,500 

420,000 

1911 

19,000 

8,100 

324,000 

Total 1 

1,888,010     1 

1,271,610     1 

$49,004,758 

The  West  the  Best  and  California  the  Best  of  the  West.  71 

To  this  tabular  statement  should  be  added  the  totals  of 
the  operations  of  the  industry  for  the  first  decade  of  its 
existence,  say  from  1850  to  1859,  both  years  inclusive.  The 
product  for  that  period  was  242,994  flasks,  all  of  which, 
it  is  presumed,  came  from  the  New  Almaden  mine.  The 
exports  for  the  same  interval  were  184,457  flasks.  Prices 
for  that  period  were  generally  much  higher  than  for  the 
subsequent  years,  the  average  being  about  $57  per  flask. 
Applying  this  average  to  the  quantity  exported,  the  value  is 
$10,514,049.  This  looks  like  a  large  sum  for  the  quantity 
exported,  but  the  opening  of  the  mine  and  the  high  cost 
for  labor  and  supplies  during  those  years  had  their  effect 
on  the  net  profits. 

Dividing  the  next  fifty-two  years  of  this  industry  into 
two  equal  intervals,  the  totals  are  as  follows:  From  1860 
to  1885,  both  years  inclusive,  the  product  was  1,178,399 
flasks;  exports,  837,643  flasks;  value  of  exports,  $32,003,208; 
while  from  1886  to  1911,  the  product  was  709.611  flasks; 
exports,  433,967  flasks;  value  of  exports,  $17,001,550.  The 
grand  totals  from  1850  to  1911,  both  years  inclusive,  show 
a  product  of  2,131,004  flasks;  exports,  1,456,067  flasks; 
value  of  exports,  $59,518,807.  To  this  sum  should  be  added 
$26,997,480  for  the  product  not  accounted  in  the  exports, 
thus  raising  the  value  of  the  total  product  to  $86,516,300. 

The  large  difference  between  product  and  exports  is 
due  to  the  failure  to  obtain  full  returns  from  the  railways, 
and  to  the  liberal  shipments  to  Nevada  and  adjoining 
States  and  Territories,  of  which  there  are  no  perfect  rec- 
ords obtainable.  Product  American  quicksilver  in  1912 
was  20,631  flasks,  of  which  16,500  flasks  were  credited  to 
California,  and  remainder  to  Texas  and  Nevada.  To  date, 
Texas  has  produced  47,000  flasks,  valued  at  $2,000,000. 

The  first  shipments  of  quicksilver  by  the  all-rail  route 
were  published  in  1870.    These  reports  were  continued  until 


72  The  West  the  Best  and  California  the  Best  of  the  West. 

1897,  when  they  were  suspended.  The  quicksilver  ship- 
ments by  rail  for  the  intervening  years  have  been  added  to 
the  shipments  by  water  in  the  tabular  statement.  The  en- 
forced elimination  of  the  shipments  by  rail  since  1897 
accounts  for  the  smaller  totals  in  the  subsequent  years, 
when  such  totals  represent  only  the  shipments  by  the  water 
routes. 

Quicksilver  shipments  by  sea  from  San  Francisco  began 
very  early,  and  formed  an  important  part  in  the  value  of 
the  early  cargoes  from  the  port,  when  there  was  but  little 
else  than  mineral  products  to  make  up  cargoes.  A  tabular 
statement  of  these  shipments  from  San  Francisco  from 
1860  to  1883,  prepared  by  the  writer,  has  been  preserved. 

The  destinations  of  these  exports  for  that  period  were 
New  York  and  allied  ports,  Great  Britain,  China  and  Hong- 
kong, Japan,  Mexico,  Chile,  Peru,  Central  America,  Aus- 
tralia, Panama,  and  British  Columbia.  Shipments  were 
annually  made  to  Great  Britain  from  1861  to  1868,  and  also 
in  1875  and  1876.  The  total  quantity  shipped  to  that  coun- 
try in  those  ten  years  was  27,300  flasks,  of  which  10,400 
flasks  went  out  in  1865. 

The  largest  shipments  by  water  from  1860  to  1883  were 
to  China  and  Hongkong.  During  that  interval  these  ship- 
ments amounted  to  341,100  flasks,  of  which  207,000  flasks 
were  made  in  the  last  ten  years  of  that  interval,  equal  to 
20,700  flasks  per  annum.  In  some  of  these  years  the  quan- 
tity taken  for  those  markets  was  more  than  one-half  of  the 
annual  product.  In  1879  these  shipments  to  those  markets 
were  37,000  flasks,  the  largest  on  record.  In  1884  the 
buying  of  quicksilver  for  the  China  market  was  shifted 
from  San  Francisco  to  London,  because  of  the  relatively 
better  terms  obtainable  in  the  latter  market.  For  that  and 
the  following  year  only  400  flasks  were  bought  in  this  mar- 
ket for  China,  and  in  1886  not  a  single  flask  was  obtained. 


The  West  the  Best  and  California  the  Best  of  the  West.  73 

Near  the  close  of  1887  buying  for  the  Chinese  market  was 
again  resumed  in  San  Francisco,  and,  barring  a  few  breaks, 
it  has  been  continued  ever  since.  The  shipments  in  1887 
were  2,900  flasks. 

Japan  has  been  a  moderate  buyer,  taking  over  6,000 
flasks  from  1860  to  1883.  In  recent  years  it  has  done  bet- 
ter, taking  about  6,000  flasks  in  1904  and  1905. 

Mexico  has  been  the  best  regular  buyer  of  California 
quicksilver,  having  taken  a  good  quantity  annually  from 
the  start.  From  1860  to  1883  these  shipments  to  Mexico 
amounted  to  205,600  flasks.  In  nine  of  these  years  the 
annual  exports  exceeded  10,000  flasks  per  annum.  The 
largest  yearly  total  was  15,000  flasks  in  1881.  Mexico  con- 
tinues a  good  customer. 

South  America  was  a  good  customer  for  California 
quicksilver  in  the  earlier  years.  Between  1860  and  1883, 
Chile  took  19,500  flasks  and  Peru  44,900  flasks.  Australia 
was  also  a  good  customer,  taking  20,000  flasks  during  the 
same  interval.  The  shipments  to  New  York  during  the 
same  period  were  38,000  flasks. 

The  export  demand  from  1870  to  1874  was  quite  light, 
amounting  in  1873  to  only  5,752  flasks  by  the  water  routes. 
That  was  the  smallest  total  in  a  quarter  of  a  century.  The 
largest  yearly  export  total  in  that  period  was  52,452  flasks 
in  1879.  For  the  last  quarter  of  a  century  comparatively 
little  quicksilver  has  been  shipped  from  San  Francisco  to 
either  South  America  or  Australia,  those  countries  evi- 
dently receiving  the  bulk  of  their  supplies  of  this  char- 
acter from  Europe.  On  the  other  hand.  Central  America 
has  been  a  better  customer  than  previously,  having  taken 
in  the  last  sixteen  years  about  15,000  flasks. 

From  1871  to  1891  the  profits  of  the  New  Almaden 
mine  were  $5,173,000.  From  1850  to  1890  the  mine  pro- 
duced 906,000  flasks  from  654,000,000  tons  of  ore  roasted. 


74  The  West  the  Best  and  California  the  Best  of  the  West. 

to  secure  which  48  miles  of  drifting  and  sinking  were 
necessary.  The  mine  is  still  productive,  and  has  been  a 
good  dividend  payer. 

Other  California  quicksilver  mines  have  paid  dividends 
as  follows:  Napa  Con.,  $1,840,000;  New  Idria,  $1,660,000; 
Redington,  $1,032,000.  The  amounts  paid  by  others  are 
not  recalled.  The  industry  has  been  of  much  value  to  the 
State,  and  has  furnished  the  world  with  nearly  all  the 
American  product. 

California  Copper  Product. 

Copper  mining  in  the  United  States  first  began  to 
attract  attention  in  1844  in  the  Lake  Superior  district, 
Michigan,  and  in  the  course  of  a  few  years  developed  into 
a  very  important  industry  of  much  value  to  the  country 
and  of  much  profit  to  those  who  invested  in  the  enterprise. 
For  many  years  thereafter  Michigan  was  the  leading  cop- 
per State  of  the  country.  The  copper  mines  of  that  State 
carried  small  percentages  of  gold  and  silver  as  by-products. 

Gold  mining  in  California  soon  developed  silver  as  a 
by-product  in  small  quantity.  When  the  miners  from  Cali- 
fornia went  into  Nevada,  Utah,  Idaho  and  adjacent  terri- 
tory, silver  was  the  leading  metal  at  first,  mth  gold,  copper 
and  lead  as  by-products. 

Copper  mining  in  California  did  not  amount  to  much 
prior  to  1860.  In  the  early  part  of  the  following  decade 
there  were  considerable  shipments  of  copper  ores  to  do- 
mestic Atlantic  ports  and  Europe  for  the  want  of  proper 
smelting  facilities  near  the  sources  of  production.  During 
the  same  decade  there  were  also  shipments  of  silver  ores 
to  the  Atlantic  side  for  the  same  reason. 

Later,  California  copper  ores  were  reduced  to  the  forms 
of  copper  matte  and  copper  cement,  which  found  ready 
sale.      Still  later,   modern   smelting   works   were   installed. 


The  West  the  Best  and  California  the  Best  of  the  West.  75 

and  the  industry  from  that  time  on  assumed  some  degree 
of  importance. 

In  1900  California  was  credited  with  a  copper  product 
of  nearly  15,000  tons,  valued  at  $4,488,700.  In  the  follow- 
ing year  the  product  was  reported  at  17,460  tons,  valued 
at  $5,501,800.  In  the  next  two  years  there  was  quite  a 
reduction  in  the  yield,  but  in  1904  the  product  was  quite 
as  large  as  in  1900.  In  1905  it  dropped  to  8,500  tons,  but 
in  the  very  next  year  it  was  over  14,000  tons,  and  since 
then  the  yield  has  been  steadily  increasing  with  the  excep- 
tion of  the  last  two  years.  In  1909  the  product  was  nearly 
33,000  tons,  nearly  double  that  of  the  previous  largest 
yield,  and  probably  the  heaviest  ever  reported.  In  1910 
it  was  about  27,000  tons  and  in  1911  it  was  18,000  tons.  It 
was  still  larger  in  1912. 

From  1894  to  1912,  both  years  inclusive,  California  is 
estimated  to  have  produced  about  290,000  short  tons  of 
copper,  valued,  according  to  the  average  yearly  market 
rates,  at  $87,000,000. 

Copper  ore  smelters  in  California  have  met  with  the 
same  difficulties  that  have  been  encountered  in  other 
States,  incident  to  the  objectionable  character  of  the  fumes. 
Whether  these  can  be  fully  overcome,  or  even  materially 
modified  in  all  eases,  is  still  a  problem  of  more  or  less 
serious  import.  It  is  hoped  that  this  may  be  possible  in 
all  cases  everywhere,  for  the  metal  has  always  been  essen- 
tial to  material  progress,  and  never  so  essential  as  at 
present. 

The  Mountain  Copper  Mining  Company  in  Shasta 
County,  California,  paid  dividends  of  $850,000  in  1912. 

The  American  copper  industry  has  had  a  wonderful 
history,  especially  in  the  last  quarter  of  a  century.  The 
entire  product  of  the  country  in  1849,  according  to  a  report 
of  the  American   Metal   Market   of  New  York,   was   only 


76  The  West  the  Best  and  California  the  Best  of  the  West. 

700  tons.  In  1860  the  total  was  only  7,200  tons  and  in 
1870  it  was  12,600  tons.  All  but  300  tons  of  that  total  was 
credited  to  the  Michigan  mines.  In  1881  it  was  nearly 
36,000  tons.  The  Michigan  mines  furnished  26,500  tons 
of  that  total;  Arizona,  4,000  tons;  Montana,  875  tons,  and 
all  other  States  and  Territories,  4,475  tons. 

Up  to  that  time,  and  for  several  years  afterwards,  the 
Lake  Superior  mines  had  a  good  swing  of  the  domestic  and 
foreign  markets,  and  was  an  important  factor  in  regulating 
prices  in  the  home  fields.  In  1882  Arizona  was  the  most 
formidable  rival  of  Michigan  in  the  copper  realm.  It  did 
not  then  appear  that  Montana  would  be  much  of  a  com- 
petitor. But  the  country  was  beginning  to  wake  up  to  the 
importance  of  this  industry,  and  an  active  search  for  cop- 
per deposits  soon  began.  Even  in  1870  copper  mining  was 
in  operation  in  twenty-one  States  and  Territories,  and  ore 
had  been  found  in  several  others. 

In  1886  the  product  was  72,800  tons,  of  which  the 
Michigan  mines  contributed  39,300  tons;  Montana,  25,000 
tons,  and  Arizona,  7,100  tons.  That  was  the  largest  prod- 
uct of  the  Michigan  mines  up  to  that  time,  but  during  the 
previous  year  Montana  produced  30,300  tons,  and  in  1884 
Arizona  yielded  about  12,000  tons. 

It  was  in  1888  that  the  copper  product  of  the  United 
States  first  exceeded  100,000  tons.  Eight  years  later  the 
yield  was  over  200,000  tons.  In  the  subsequent  years  there 
has  been  a  further  substantial  increase,  reaching  in  1912 
to  706,213  long  tons. 

The  product  in  1900  was  268,800  tons.  In  that  year 
Arizona  claimed  a  product  of  85,500  tons,  which  placed 
it  third  in  the  productive  list,  Montana  being  second  and 
Michigan  first. 

From  1883  to  1900,  both  years  inclusive,  Arizona 
claimed  a  product  of  over  500,000  tons.     According  to  the 


The  West  the  Best  and  California  the  Best  of  the  West.  77 

annual   average   prices  during  that   interval,   the  value   of 
this  product  was  $142,000,000. 

In  1901  Montana  produced  114,000  tons  copper,  or  about 
one-quarter  of  the  world's  supply,  thus  placing  it  at  the 
head  of  the  copper  industry  of  the  country.  The  average 
price  of  electrolytic  copper,  the  kind  produced  in  that 
State,  in  that  year,  was  over  16  cents  per  lb.,  and  hence 
the  value  of  the  yield  was  $36,751,800.  In  the  following 
year  the  price  averaged  a  little  over  lli^  cents,  and  this 
low  value  had  its  effect  on  the  product,  which  was  106,100 
tons.  Arizona  produced  179,000  short  tons  in  1912,  valued 
at  about  $58,000,000,  thus  placing  it  at  the  head  of  this 
industry  in  this  country. 

There  have  been  two  noteworthy  attempts  to  control 
the  price  of  this  metal.  The  first  originated  in  France,  and 
was  a  dismal  failure.  That  was  many  years  ago.  The 
second  was  in  this  country,  and  met  the  same  fate,  embar- 
rassing in  its  collapse  many  financial  institutions  through- 
out the  country. 

The  market  value  of  the  metal  has  been  subject  to 
many  fluctuations  under  various  influences  in  the  last  half 
century,  and  the  range  between  certain  years  has  been 
very  wide.  The  two  attempts  to  corner  the  market,  of 
course,  enhanced  values  beyond  the  normal.  The  varia- 
tions in  supply  and  demand  have  also  had  their  bearing 
on  values. 

In  1860  bar  copper  sold  in  New  York  at  24c  per  lb.,  in 
gold,  though  the  other  extreme  for  that  year  was  19%c. 
Five  years  later,  during  the  suspension  of  specie  payments, 
the  same  metal  sold  at  50^c  in  paper  money,  declining 
the  same  year  to  28c  and  afterwards  selling  at  45i/^c  to 
39i/4c.  Subsequently  the  highest  price  in  currency  was  44c 
in  1872  and  the  lowest  18c  in  the  same  year. 

Since  the   resumption   of  specie   payments  in  January, 


78  The  West  the  Best  and  California  the  Best  of  the  West. 

1879,  the  price  has  been  on  a  specie  basis.     In  January, 

1880,  it  sold  at  25c,  but  soon  dropped  to  IT^/^c.  The  best 
subsequent  price  for  many  years  was  20%c  in  January, 
1882.  This  declining  tendency  continued  until  1894,  read- 
ing 9c  near  the  close  of  that  year.  For  the  next  four 
years  there  was  little  variation  in  the  price.  In  that  inter- 
val the  demand  and  supply  received  some  adjustment,  and 
in  the  next  three  years  the  range  was  I8I/4C  to  16%c. 
There  are  now  so  many  productive  sources  of  copper  in 
this  country  that  extreme  prices  can  hardly  be  duplicated. 

California  Borax  Product. 

The  discovery  of  borax  in  California  added  a  new  and 
unique  industry  to  the  State.  A  deposit  of  this  kind  was 
found  in  Modoc  County  in  1863,  at  the  bottom  of  a  shal- 
low body  of  water  4,000  feet  long,  1,800  feet  wide  and  3 
feet  deep,  known  as  Clear  Lake.  Other  deposits  were 
subsequently  found  in  other  parts  of  the  State. 

These  deposits  were  worked  in  a  small  way  from  the 
very  start,  and  with  a  varying  degree  of  success.  Prior 
to  this  discovery,  the  country  had  depended  on  foreign 
sources  for  supplies.  On  account  of  the  high  cost,  the  con- 
sumption had  been  light,  and  the  uses  to  which  the  article 
had  been  applied  were  quite  limited. 

As  the  California  product  began  to  increase,  capital  was 
attracted  to  the  industry,  and  the  development  work  was 
greatly  accelerated.  Economies  were  introduced  in  the 
production  and  in  transportation  to  markets  of  consump- 
tion. These  led  to  large  reductions  in  the  cost  to  the  con- 
sumer and  greatly  enlarged  the  field  both  in  area  and  in 
the  variety  of  uses  in  which  it  was  found  to  be  of  service. 

In  September,  1890,  the  Pacific  Coast  Borax  Company 
was  organized  under  the  laws  of  California  to  further  de- 
velop the  industry  on  a  still  larger  scale.     The  authorized 


The  West  the  Best  and  California  the  Best  of  the  West.  79 

capital  of  this  corporation  was  placed   at  $2,000,000,  but 
the  outstanding  capital  was  reported  at  $1,900,000  in  1912. 

British  capitalists  have  been  interested  in  the  company 
for  some  time,  and  it  is  understood  that  they  now  have 
full  control  of  the  corporation. 

According  to  the  reports  of  the  State  Mineralogist,  the 
product  of  borax  in  California  in  1894  was  11,540,000  lbs., 
equal  to  5,770  short  tons,  valued  at  $807,800.  There  was 
a  moderate  annual  increase  in  the  next  four  years,  the 
total  for  1898  being  8,300  tons.  In  the  very  next  year 
the  total  was  over  20,000  tons,  and  in  the  following  year 
it  was  over  25,000  tons.  In  1901,  it  was  only  7,221  tons.. 
However,  in  the  very  next  year  it  was  17,202  tons. 

From  1894  to  1902,  a  period  of  nine  years,  the  total 
product  was  105,350  tons,  valued  at  $9,682,700.  These 
totals  cover  the  refined  article. 

In  the  subsequent  years,  according  to  the»  same  author- 
ity, the  totals  refer  to  the  crude  product.  In  1903  this  was 
34,430  short  tons,  valued  at  $661,400.  In  the  following 
two  years  it  averaged  46,000  tons  per  annum.  The  record 
total  product  was  58,173  tons  in  1906. 

From  1903  to  1911,  both  years  inclusive,  the  crude 
product  was  291,740  tons,  with  an  estimated  value  of  $8,- 
903,800. 

The  company  began  paying  dividends  in  December, 
1890,  and  the  number  paid  to  October  1,  1912.  was  192. 
Most  of  these  were  at  the  rate  of  $1  per  share  per  month, 
but  there  were  16  at  rates  varying  from  $2.50  to  $10  per 
share,  and  one  at  $40.  The  total  dividends  paid  to  October, 
1912,  are  equal  to  $308.50  per  share. 

California  Cement  Product. 

California  Portland  cement  is  not  made  in  Portland, 
Oregon,  or  in  Portland,  Maine,  or  in  any  other  Portland, 


80  The  West  the  Best  and  California  the  Best  of  the  West. 

but  is  made  in  several  localities  in  California.  There  was 
a  time  in  the  history  of  California  when  all  its  supplies  of 
Portland  cement  came  from  Europe.  That,  however,  was 
some  years  ago,  when  large  consignments  of  that  kind 
were  received.  In  recent  years  some  vessels  have  carried 
cement  from  Europe  to  the  Pacific  Coast,  but  mostly  in  the 
form  of  ballast. 

In  the  pioneer  days  of  California,  considerable  lots  of 
Eastern  cement,  known  as  Rosendale,  were  imported  into 
San  Francisco.  In  the  early  sixties  a  good  quality  of 
cement  was  made  at  Benicia,  California,  and  that  industry 
was  maintained  for  several  years,  and  to  some  extent  was 
a  competitor  with  Eastern  cement,  but  never  with  the 
Portland  cement  from  Europe,  which  was  of  a  much  higher 
grade. 

In  more  recent  years  the  right  combinations  have  been 
found  in  California  for  making  Portland  cement  that  com- 
pares favorably  with  that  imported  from  Belgium  and 
other  European  countries.  This  has  been  a  fortunate  thing 
for  the  State,  especially  in  the  last  few  years,  incident  to 
the  rebuilding  of  San  Francisco.  The  big  fire  of  April, 
1906,  had  much  to  do  with  promoting  activity  in  the  de- 
velopment of  this  industry.  That  event  created  the  neces- 
sity for  large  supplies  of  this  article,  and  the  response  has 
been  equal  to  the  demand. 

There  are  upwards  of  a  half  dozen  firms  or  corpora- 
tions engaged  in  manufacturing  Portland  cement  in  differ- 
ent counties  in  the  State,  both  north  and  south  of  San 
Francisco. 

The  Santa  Cruz  Portland  Cement  Company  was  organ- 
ized in  June,  1905.  The  plant  is  near  Davenport,  only  a 
few  miles  from  Santa  Cruz,  and  has  a  capacity  for  6,000 
barrels  daily. 

The   Standard  Portland  Cement  Company  has  a  plant 


The  West  the  Best  and  California  the  Best  of  the  West.  81 

in   Napa   County   with   a   daily   capacity   of   3,000   barrels. 
This  company  reports  a  capital  of  $4,000,000. 

The  Pacific  Portland  Cement  Company  was  organized 
in  1905  with  a  capital  of  $6,000,000.  The  plant  is  at 
Cement,  Solano  County,  and  consists  in  part  of  1,700  acres 
and  two  mills.  The  company  has  paid  a  number  of  divi- 
dends at  the  rate  of  50  cents  and  75  cents  per  share 
monthly. 

From  the  reports  of  the  State  Mineralogist,  it  is  learned 
that  from  a  product  of  8,000  barrels  cement,  valued  at 
$21,600  in  1894,  the  yield  has  been  increased  to  6,371,400 
barrels  in  1911,  valued  at  $9,085,000.  It  was  not  until  1902 
that  the  yearly  product  exceeded  100,000  barrels,  but  three 
years  later  it  was  over  1,000,000  barrels.  From  1894  to 
1911,  a  period  of  18  years,  California  has  produced  23,- 
254,100  barrels  Portland  cement,  valued  at  $33,424,000. 
This  industry  is  one  in  which  all  the  parties  interested  are 
to  be  congratulated,  because  of  the  money  it  has  kept  in 
the  State  and  the  employment  it  has  given  to  labor. 

California  Leads  in  Earth  Oil  Product. 

Earth  oil  was  known  to  exist  in  some  parts  of  the 
world  centuries  ago.  It  was  dipped  from  wells  on  the 
banks  of  the  Irawaddy  many  scores  of  years  ago.  As  early 
as  1858  these  wells  were  from  200  to  300  feet  deep,  and 
the  oil  was  used  by  the  Burmese  for  light  and  other  pur- 
poses. 

The  first  earth  oil  obtained  by  boring  in  this  country 
was  the  result  of  some  operations  by  Colonel  Drake  of  New 
Haven  at  Titusville,  Pa.,  on  the  28th  of  August,  1859.  At 
a  depth  of  69i/^  feet  he  struck  a  fine  flow  which  yielded 
10  barrels  per  diem  without  pumping.  Oil  had  been  previ- 
ously obtained  from  pools  and  trenches  near  the  earth's 


82  The  West  the  Best  and  California  the  Best  of  the  West. 

surface,  but  Colonel  Drake  is  entitled  to  the  credit  of 
boring  the  first  oil  well. 

That  was  the  beginning  of  the  earth  oil  industry  in  the 
United  States.  That  one  oil  well  at  Titusville,  Pa.,  has 
since  been  multiplied  by  thousands. 

While  Pennsylvania  was  the  first  State  to  herald  a  dis- 
covery of  this  kind,  it  did  not  long  hold  a  monopoly. 
Many  other  States  have  since  made  the  same  discovery, 
and  added  materially  to  the  supply. 

From  the  first  ten  barrels  of  420  gallons  produced  in 
the  first  day's  flow  from  that  lone  well  at  Titusville,  a 
business  of  magnificent  proportions  has  been  developed.  It 
is  impossible  to  form  any  adequate  estimate  of  the  value 
and  importance  of  this  industry  to  the  United  States,  both 
in  the  home  and  in  the  foreign  field. 

Even  in  the  first  quarter  of  a  century  of  the  existence 
of  this  industry  in  the  United  States,  the  development  was 
remarkable.  In  that  interval  38,000  wells  were  bored,  and 
one  of  these  yielded  as  high  as  4,000  barrels  daily.  Up 
to  that  time  it  was  estimated  that  $400,000,000  had  been 
invested  in  the  enterprise. 

From  82,000  barrels  as  the  total  product  for  1859,  the 
yield  steadily  increased  until  it  reached  11,188,700  barrels 
in  1874.  At  that  time  grave  fears  were  entertained  that 
the  product  had  reached  its  maximum.  A  slight  decrease 
in  the  yield  in  the  following  year  tended  to  confirm  these 
fears.  A  further  reduction  the  very  next  year,  when  the 
total  product  was  less  than  9,000,000  barrels,  produced 
something  of  a  panic  among  those  interested  in  the  trade. 

Instead  of  being  discouraged  by  these  results,  they  had 
directly  the  opposite  effect.  They  stimulated  a  renewal 
of  the  search  for  other  deposits,  the  incentive  being  higher 
prices  for  the  article  because  of  the  falling  off  in  the  flow, 
which,  in  case  of  success,  meant  much  to  the  discoverers. 


The  West  the  Best  and  California  the  Best  of  the  West.  83 

This  search  was  active  and  thorough,  and  resulted  in  find- 
ing similar  deposits  in  the  Bradford,  Pa.,  district. 

This  second  discovery  scattered  all  fears  of  an  exhaus- 
tion of  supplies  for  the  time  being.  The  decrease  in  the 
yield  was  immediately  checked,  and  from  that  time  on 
there  was  a  steady  increase  in  the  product  annually  for 
some  time. 

From  the  low  yield  of  8,823,100  barrels  in  1876,  the 
yearly  product  rose  to  28,650,200  barrels  in  1882,  which 
was  the  maximum  yield  for  the  first  twenty-five  years  of 
operations.  In  the  last  year  of  that  period  the  total  was 
26,662,800  barrels. 

From  1864  to  1883,  a  period  of  twenty  years,  the  yield 
was  281,451,423  barrels,  equal  to  9,174,979,766  gallons. 

To  provide  a  demand  for  this  increasing  product,  for- 
eign countries  were  early  invaded  in  search  of  customers, 
and  with  good  results.  In  1864  these  exports  were  23,210,- 
400  gallons,  valued  at  $10,782,700.  These  shipments  in- 
cluded petroleum  and  all  its  various  by-products  of  benzine, 
naphtha,  gasoline,  paraffine,  etc.  In  1883  these  shipments 
were  505,931,600  gallons,  valued  at  $44,913,100.  In  the 
previous  year,  when  the  maximum  of  exports  for  that 
interval  was  reached,  the  total  was  559,954,600  gallons, 
valued  at  $51,232,700.  The  maximum  of  yearly  revenue 
from  this  foreign  trade  for  that  interval  was  reached  in 
1877,  when  the  total  was  $61,780,400  for  309,198,900  gal- 
lons as  the  result  of  higher  prices. 

The  value  of  this  foreign  trade  for  those  twenty  years 
was  over  $700,000,000  for  the  4,580,000,000  gallons  ex- 
ported. As  this  total  is  less  than  one-half  of  the  product 
for  those  twenty  years,  the  total  product  for  that  period 
represented  more  than  $1,400,000,000.  It  took  California, 
the  most  prolific  gold  State  in  the  country,  over  fifty  years 


84  The  West  the  Best  and  California  the  Best  of  the  West. 

to  produce  a  gold  product  equal  to  that  magnificent  sum. 
A  comparison  of  net  yield  might  show  a  different  result. 

In  1884  American  producers  of  petroleum  were  some- 
what anxious  over  a  continuance  of  the  European  demand, 
because  of  advices  from  Russia  to  the  effect  that  there  was 
increased  activity  in  the  oil  fields  of  that  country.  It  was 
given  out  at  that  time  that  Russia  could  lay  oil  down  in 
German  ports  at  25  cents  per  barrel  less  than  the  Ameri- 
can product  had  been  receiving.  The  significance  of  this 
warning  arose  from  the  fact  that  in  1883  it  was  ascer- 
tained that  the  shipments  to  Europe  from  New  York  alone 
in  that  year  were  304,000,000  gallons,  and  that  this  quan- 
tity included  over  86,000,000  gallons  to  German  ports. 
Assuming  that  these  shipments  to  Europe  from  Baltimore 
and  Philadelphia  embraced  a  corresponding  proportion  to 
Germany,  it  was  argued  that  the  loss  of  the  German  trade 
was  equal  to  a  loss  of  25  per  cent  of  the  entire  European 
trade. 

An  examination  of  the  yearly  exports  of  American 
petroleum  to  Germany  in  the  subsequent  years  shows  that 
these  fears  were  measurably  groundless.  It  is  true  this 
trade  with  Germany  has  not  increased  in  the  same  ratio 
as  in  some  other  European  countries,  notably  Great  Britain, 
but  the  percentage  taken  by  Germany  has  not  varied  much 
from  one-quarter  of  the  total  quantity  sent  to  all  European 
countries.  In  1892  it  was  34  per  cent.  Two  years  later 
it  was  not  quite  18  per  cent.  In  other  years  from  1892 
to  1901  it  was  24  to  26  per  cent.  In  the  decade  ending 
with  1901,  American  petroleum  exports  to  Europe  increased 
over  40  per  cent. 

When  earth  oil  was  first  discovered  in  California  is  not 
recalled.  However,  it  was  not  much  later  than  the  date 
fixed  for  the  same  event  in  Pennsylvania.  Of  course,  there 
were  no  railways  between  New  York  and  San  Francisco 


The  West  the  Best  and  California  the  Best  of  the  West.  85 

in  those  days,   and  mail  advices  were   about   a   month   old 
when  they  arrived. 

The  news  that  earth  oil  had  been  discovered  in  Penn- 
sylvania created  considerable  interest  in  California,  where 
most  of  the  population  were  engaged  in  hunting  for  min- 
eral wealth  of  all  kinds,  and  therefore  fully  primed  to  take 
up  any  new  trail  that  might  be  suggested.  The  search 
w^as  taken  up  at  once,  now  that  the  gold  placers  were  not 
doing  as  well  as  formerly.  It  was  not  long  before  indica- 
tions of  the  object  in  search  were  found  in  the  northern 
and  southern  counties  of  the  State,  particularly  in  the  sec- 
tion south  of  San  Francisco. 

These  slight  indications  created  considerable  excitement, 
and  striking  oil-bearing  deposits  was  considered  quite  as 
important  as  striking  gold-bearing  quartz.  Claims  were 
located  right  and  left  in  all  known  districts  where  there 
were  the  slightest  indications  of  oil  in  the  ground.  •  The 
next  move  was  to  organize  companies  to  work  the  claims. 
That  was  the  California  way  of  doing  things  in  those  days. 
They  were  altogether  too  generous  to  keep  a  good  thing 
to  themselves,  and  at  the  same  time  they  were  just  selfish 
enough  to  be  willing  to  divide  the  responsibility  of  a  failure 
of  the  enterprise  with  others. 

As  early  as  1865  there  were  seventy  oil  companies 
formed  in  California,  with  a  nominal  paper  capital  of 
$45,000,000,  and  from  forty  to  fifty  wells  had  been  started, 
mostly  in  Humboldt  County.  Many  of  these  were  small 
affairs,  though  even  as  early  as  1865  one  of  them  had  been 
carried  to  a  depth  of  400  feet. 

There  was  not  a  natural  flowing  well  among  the  whole 
lot,  but  many  of  them  yielded  fairly  well  with  the  use  of 
the  pump. 

The  earth  oil  product  of  California  for  1865  was  60,000 
gallons.     Hayward  &  Coleman  received  40,000   gallons   of 


86  The  West  the  Best  and  California  the  Best  of  the  West. 

that  product,  mostly  from  Santa  Barbara  County,  and 
Stanford  Brothers  12,000  gallons,  of  which  3,000  gallons 
was  from  Humboldt  County. 

Though  this  product  did  not  come  up  to  the  expecta- 
tions of  the  more  enthusiastic,  there  was  still  a  hopeful 
spirit  entertained.  At  the  inception  of  this  movement,  some 
of  the  more  optimistic  promoters  indulged  their  imagina- 
tions with  pictures  of  the  time  when  California  would  not 
only  supply  all  the  wants  of  the  coast  in  this  particular, 
besides  China,  Japan,  East  Indies,  Australia,  Mexico,  South 
and  Central  America  and  the  Pacific  Islands,  but  would 
actually  invade  Pennsylvania  with  her  superior  means  of 
light.  A  year's  hard  work  in  the  field  and  the  expendi- 
ture of  several  thousand  dollars,  gave  a  different  color  to 
the  picture.  But  that  imaginative  scene  has  been  literally 
realized  in  every  particular,  even  to  the  sending  of  Cali- 
fornia oil  to  the  Atlantic  side  of  the  country. 

There  was  less  said  about  California  petroleum  in  1866 
than  in  1865,  and  still  less  in  1867,  though  in  the  last- 
named  year  one  of  the  wells  had  attained  a  depth  of  1,300 
feet.  About  that  time  the  industry  was  measurably  aban- 
doned. Inexperienced  operators,  costly  plant,  high  wages, 
an  inferior  quality  of  oil,  imperfect  distillation,  compara- 
tively low  prices  of  Eastern  petroleum,  all  combined  to 
bring  about  the  above  result.  The  wonder  is  that  the 
parties  interested  in  the  business  in  these  early  years  held 
on  as  long  as  they  did,  considering  all  the  obstacles  en- 
countered. 

Still  another  element  of  discouragement  at  that  time 
was  the  theory  advanced  by  some  of  the  local  scientists 
that  the  geological  formation  of  the  districts  where  the  oil 
was  found  forbade  the  idea  of  any  considerable  supply  ever 
being  obtained.  The  opinion  of  the  scientists  in  this  mat- 
ter, ending  with  such  a  conclusion,  was  not  necessary  to 


The  West  the  Best  and  California  the  Best  of  the  West.  87 

work  an  abandonment  of  all  activity  in  well  boring,  but 
that  opinion,  with  the  other  obstacles  already  mentioned, 
settled  the  business  in  the  minds  of  many,  and  for  several 
years  the  industry  was  allowed  to  repose  in  a  state  of  com- 
parative quietude. 

All  scientists  are  not  wise.  The  exceptions  show  that 
some  of  them  are  otherwise,  at  least  temporarily.  It  is 
not  wise  for  the  wisest  scientists  to  assume  that  they  know 
for  a  dead  certainty  just  what  is  in  the  earth  hundreds 
and  thousands  of  feet  below  the  surface.  History  shows 
that  they  do  not. 

About  the  year  1876  or  1877  the  petroleum  excitement 
in  California  was  renewed.  It  is  true,  the  business  had  not 
been  entirely  given  up  during  the  eight  or  ten  years  fol- 
lowing the  first  period  of  excitement.  But  the  industry 
was  now  taken  up  with  more  intelligence,  the  result  of 
experience,  though  perhaps  with  less  vim.  The  reason  for 
this  renewed  attention  at  that  time  was  the  fast  spreading 
theory  that  the  wells  of  Pennsylvania  were  giving  out. 
There  were  many  facts  then  floating  about  to  confirm  that 
theory;  and  but  for  the  discovery  of  other  districts  in 
Pennsylvania  soon  afterwards,  there  would  probably  have 
been  more  truth  than  poetry  in  these  statements. 

At  any  rate,  the  situation  at  the  East  had  the  effect 
of  putting  the  petroleum  business  of  California  on  an  en- 
larged, more  intelligent,  more  satisfactory  and  more  per- 
manent basis.  New  men  became  interested  and  new  capital 
was  secured.  There  was  a  concentration  of  work,  and 
every  move  made  formed  a  part  of  a  grand  system  for 
manipulating  the  industry  for  all  it  was  worth.  To  this 
end  all  desirable  locations  were  secured  and  the  best  and 
most  approved  appliances  for  working  the  same  were  ob- 
tained and  placed  in  position,  with  pipe  lines  for  getting 
the  oil  to  a  convenient  point  of  shipment  by  rail  to  the 


88  The  West  the  Best  and  California  the  Best  of  the  West. 

refinery  at  Alameda,  whicli  was  erected  as  a  part  of  the 
same  system. 

One  of  the  events  leading  up  to  this  new  order  of 
things  was  the  arrival  in  California  in  1875  of  two  gentle- 
men from  Philadelphia.  These  persons  evidently  knew 
something  about  the  petroleum  business.  They  immedi- 
ately leased  twenty  acres  of  oil  lands  in  one  of  the  south- 
em  counties,  and  sank  two  wells  180  to  220  feet,  which 
produced  from  15  to  20  barrels  daily.  Parties  interested 
examined  this  prospect,  and  soon  afterwards  came  to  the 
conclusion  to  embark  in  the  business.  Of  course,  there 
were  a  good  many  preliminaries  to  be  settled,  and  much 
experimental  work  was  performed. 

As  a  final  result  of  these  investigations,  there  was  or- 
ganized the  Pacific  Coast  Oil  Company,  with  Charles  N. 
Felton,  Harry  Tevis  and  D.  G.  Scofield  as  directors.  That 
was  done  in  1879. 

At  that  time  there  was  a  small  refinery  at  Newhall, 
one  of  the  stations  on  the  Southern  Pacific  railroad,  in  Los 
Angeles  County.  This  refinery  was  utilized  to  furnish  the 
southern  end  of  the  State  with  needed  supplies  of  refined 
oil.  In  the  following  year  the  company  erected  extensive 
works  for  refining  crude  oil  at  Alameda.  At  the  start 
these  works  handled  400  barrels  crude  oil  daily,  but  were 
only  run  for  six  days  in  the  week.  The  net  product  of 
refined  petroleum  annually  turned  out  was  about  2,000,000 
gallons. 

In  the  first  four  years  of  its  existence  the  Pacific  Coast 
Oil  Company  bored  24  wells  in  Los  Angeles  and  Ventura 
counties.  Four  of  these  were  closed  through  loss  of  tools, 
but  the  others  turned  out  to  be  producing  wells.  The  prin- 
cipal supply  at  that  time  came  from  the  San  Fernando 
district  in  Los  Angeles  County.  This  district  also  showed 
the  best  grade  of  oil  produced  up  to  that  time.     The  de- 


The  West  the  Best  and  California  the  Best  of  the  West.  89 

posit  of  sand  rock  containing  the  oil  in  that  district  at 
that  time  varied  from  150  to  210  feet  in  depth,  whereas  in 
Pennsylvania  at  the  same  time  the  sand  rock  deposit  was 
only  from  30  to  35  feet  deep.  The  20  wells  then  operated 
by  the  company  averaged  35  barrels  daily,  or  700  barrels 
daily  for  all. 

The  beginning  of  the  petroleum  industry  in  California 
on  broad  business  principles  looks  rather  small,  but  as  a 
matter  of  fact  it  was  not  so  small  as  it  looks.  At  that 
time  Pennsylvania  had  been  producing  oil  for  a  quarter 
of  a  century.  It  had  20,000  wells  in  operation  in  1883,  with 
a  combined  daily  product  of  63,000  to  70,000  barrels.  Tak- 
ing the  outside  figure,  the  Pennsylvania  wells  show  an 
average  daily  product  of  only  3i/^  barrels,  against  a  daily 
average  of  35  barrels  for  the  20  California  wells  then  in 
operation.  One  of  those  wells  had  been  in  operation  for 
seven  years,  and  its  total  yield  up  to  August  1,  1884,  was 
130,000  barrels.  This  was  known  as  Pico  No.  4.  Its 
largest  daily  •  yield  was  80  barrels  from  a  natural  flow. 
The  deepest  well  at  that  time  was  1,760  feet  below  the 
surface. 

Following  the  example  of  Eastern  producers  of  petro- 
leum in  the  matter  of  transportation  of  the  crude  oil  from 
the  wells  to  the  refineries,  the  Pacific  Coast  Oil  Company 
early  made  the  most  economical  arrangements  for  the  intro- 
duction of  such  transportation  facilities  then  possible. 
These  consisted  of  a  pipe  line  from  the  wells  to  the  nearest 
station  on  the  Southern  Pacific  railroad,  where  fiat  cars 
with  large  iron  tanks  received  the  oil  in  bulk  and  carried 
the  same  to  the  refinery  in  Alameda.  These  tanks  were 
owned  and  operated  exclusively  by  the  Continental  Oil  and 
Transportation  Company.  The  tanks  held  from  3,500  to 
4,200  gallons.  Arrangements  were  also  made  for  shipping 
the   oil  in   tanks   on  the   regular   coast   steamers  by   pipe 


90  The  West  the  Best  and  California  the  Best  of  the  West. 

line  from  the  wells  to  the  steamboat  landing,  thence  by 
steamer  direct  to  Alameda.  The  last-named  pipe  line  was 
26  miles  in  length,  and  was  quite  a  unique  feature  in  oil 
transportation  in  those  days.  Some  of  the  oil  sent  through 
those  pipe  lines  was  low  grade  and  pretty  heavy,  as  is 
often  the  case  with  oil  obtained  from  shale  deposits. 

At  the  same  time  that  the  company  was  getting  oil 
from  these  wells  in  Los  Angeles  and  Ventura  counties,  it 
was  obtaining  some  supplies  from  deposits  that  had  been 
found  in  the  Santa  Cruz  Mountains,  about  18  miles  from 
San  Jose.  It  was  also  prospecting  for  deposits  in  other 
sections  of  the  State. 

As  the  result  of  the  diversified  economics  put  in  opera- 
tion in  the  production  and  refining  of  crude  petroleum,  and 
in  the  transportation  and  marketing  of  the  same  and  its 
several  by-products,  the  price  to  consumers  has  been  won- 
derfully reduced  since  the  article  first  became  a  commer- 
cial product  of  the  country. 

What  the  price  of  refined  petroleum  was  in  the  New 
York  market  prior  to  1864,  or  during  the  first  five  years  of 
the  operation  of  the  industry,  is  not  recalled.  It  is  known 
that  from  1864  to  1883  there  was  for  the  most  part  a  steady 
and  somewhat  radical  reduction  from  year  to  year. 

The  annual  average  rates  for  standard  white  in  barrels 
during  that  interval  in  the  above  market,  as  compiled  by 
the  writer  in  1884,  is  of  interest.  In  1864,  the  average 
was  33.8c  per  gallon.  In  the  following  year  it  was  48.3c, 
and  in  the  next  year  42.9c.  It  never  reached  even  the 
lowest  of  these  three  averages  again.  From  32.2c  in  1867, 
it  rapidly  declined  to  11.2c  in  1875.  For  some  reason,  not 
now  remembered,  it  rose  to  21.3c  in  1876,  declining  the 
following  year  to  14.9e  and  in  the  next  year  to  10,6c. 
From  1879  to  1883  the  rates  varied  from  9c  to  7.3c. 

That  is  what  well-thought-out  economics,  good  business 


The  West  the  Best  and  California  the  Best  of  the  West.  91 

judgment,    concentration    of    effort,    active    and    persistent 
energy,  did  for  this  business  in  that  interval. 

The  foregoing  illustration  as  to  the  variations  in  values 
of  petroleum  refer  to  the  article  in  barrels  in  the  New 
York  market.  In  looking  over  the  price  lists  in  the  San 
Francisco  market  for  a  similar  illustration,  the  California 
Daily  Register  of  May  21,  1857,  was  first  consulted,  but, 
as  that  was  printed  upwards  of  two  years  before  petro- 
leum became  a  commercial  product  in  this  country,  and 
only  referred  to  camphene  as  the  best  illuminant  to  be  had, 
the  paper  was  immediately  laid  aside  for  some  later  pub- 
lication. 

California  began  using  petroleum  as  an  illuminant  quite 
as  quickly,  and  perhaps  even  more  generally,  in  proportion 
to  population,  as  any  other  part  of  the  country,  not  even 
excepting  Pennsylvania,  the  only  source  of  production  in 
the  first  decade  of  the  industry.  The  article  was  then 
called  coal  oil,  and  subsequently  it  was  sometimes  mani- 
fested in  the  freight  bills  as  kerosene  oil.  The  dictionary 
says  that  kerosene  is  an  oil  from  bituminous  coal,  used  for 
illumination,  and  that  petroleum  is  a  liquid  mineral  pitch 
or  rock  oil. 

The  imports  of  this  article  in  San  Francisco  under  its 
various  names  for  the  year  1863  were  60,735  cases  and 
640  barrels.  In  the  latter  form  of  package,  the  article  was 
manifested  as  coal  oil  and  kerosene.  In  the  case  form, 
nearly  all  was  manifested  as  coal  oil,  the  only  exceptions 
being  6,844  cases  kerosene  and  200  cases  petroleum. 

A  case  of  petroleum  contains  two  five-gallon  tins,  and 
that  was  the  popular  form  of  shipping  the  Eastern  product 
to  San  Francisco.  A  barrel  of  petroleum  means  42  gal- 
lons. Therefore,  these  imports  at  San  Francisco  in  1863 
were  634,230  gallons. 

In  1865,  under  a  depletion  of  stocks  in  San  Francisco, 


92  The  West  the  Best  and  California  the  Best  of  the  West. 

sales  of  coal  oil  to  arrive  were  made  at  $1.40  per  gallon, 
while  some  jobbing  lots  were  sold  as  high  as  $1.75  per 
gallon.  Prices  have  never  been  as  high  as  that  since.  One 
reason  for  these  extreme  rates  was  the  internal  revenue  tax 
of  20c  per  gallon  levied  during  the  Civil  War.  In  the 
first  six  months  of  1876,  Devoe's  Brilliant,  a  popular  brand, 
sold  at  25@27yoc  per  gallon.  A  change  in  the  local 
agency  of  this  brand  at  the  end  of  that  period  sent  up  the 
price  during  the  last  half  of  the  same  year  to  44@45c. 

Another  extreme  in  the  price  of  coal  oil  in  the  same 
market  occurred  in  1883,  when  150  degree  oil  in  barrels 
sold  down  as  low  as  13c.  Case  oil  at  that  time  was  3i/^c 
to  4%e  higher  than  in  barrels.  In  the  very  next  year 
case  oil  of  the  same  degree  sold  at  28@31c. 

Since  1884  there  have  been  many  variations  in  the 
value  of  petroleum  in  the  San  Francisco  market,  and  some 
of  them  have  been  quite  sharp  and  radical,  but  the  general 
trend  has  been  to  a  lower  level.  Prices  of  case  oil  in  the 
closing  months  of  1912  for  150  degree  varied  from  15y2C 
to  18^20,  and  in  iron  barrels  5c  less. 

The  present  era  in  the  California  oil  industry  may  be 
safely  dated  back  to  1875,  when  the  two  gentlemen  from 
Pennsylvania  arrived  in  San  Francisco  to  look  over  the 
field  and  take  up  the  work.  For  the  five  years  prior  to 
their  arrival  the  product  had  increased  from  3,600  barrels 
to  7,700  barrels,  making  a  total  of  28,200  barrels,  valued 
at  $52,800. 

An  industry  that  could  not  show  a  better  record  than 
that  in  five  years  was  not  very  inspiring,  and  it  must  have 
required  a  good  degree  of  optimism  to  invest  time  and 
money  in  such  an  unpromising  undertaking. 

The  writer  began  compiling  figures  as  to  the  product 
of  California  petroleum  in  1879.  Five  years  later,  in  seek- 
ing   information    on    the    subject    from    a    merchant    who 


The  West  the  Best  and  California  the  Best  of  the  West. 


93 


handled  much  of  the  coal  oil  trade,  he  was  told  that  the 
product  might  be  100  barrels  per  day,  but  as  the  Eastern 
wells  were  turning  out  70,000  barrels  per  day,  the  yield  in 
this  State  was  too  insignificant  to  interest  him  in  the  least. 
Others  interviewed  at  the  same  time  did  not  know  as  much 
as  that,  and  cared  less,  if  that  were  possible. 

Despite  these  difficulties  in  ascertaining  the  facts  in  the 
matter,  the  writer's  personal  compilation  for  the  five  years 
ending  with  and  including  1883  was  accepted  as  substanti- 
ally correct  when  submitted  to  parties  well  versed  in  the 
business,  and  has  since  formed  a  part  of  the  statistical  his- 
tory of  this  industry  in  many  of  the  repeated  publications. 

Beginning  with  1870,  when  the  yield  was  reported  at 
3,600  barrels,  the  product  and  value  in  ten-year  periods 
may  be  stated  as  follows: 


1870-79 

1880-89 

1890-99 

1900-09 

1910 

1911 

1912 

Grand  Total 


Barrels 


96.035 
3,050,024 
11,610,917 
370,520,856 
77,699,683 
83,744,044 
89,601,.565 


636,323,124 


Values 


$  142,923 
5,370,561 
12,155,920 
255,197,122 
46,752,512 
40,552,088 
53,761,000 


$413,932,126 


For  the  first  decade  the  annual  yield  was  9,600  barrels; 
for  the  second,  305,000;  third,  1,161,000;  fourth,  37,052,000 
barrels.  Prior  to  1911,  these  totals  did  not  include  the 
quantity  consumed  on  the  field.  In  1911  it  is  estimated 
that  about  5,000,000  barrels  were  consumed  at  the  plants, 
and  this  has  been  added  to  the  total  for  that  year  and  also 
for  the  year  1912. 

The  number  of  producing  wells  has  been  steadily  in- 
creased from  year  to  year  for  many  years.     At  the  close 


94  The  West  the  Best  and  California  the  Best  of  the  West. 

of  1901  these  wells  numbered  2,051,  while  at  the  close  of 
1912  there  were  5,625  wells  of  more  or  less  productive 
capacity.  Of  the  wells  in  operation  a  decade  ago,  more 
than  one-half  were  in  the  Los  Angeles  district  and  the 
remainder  in  the  San  Joaqviin  Valley.  Of  the  open  wells 
at  the  close  of  1912,  there  were  3,765  in  the  San  Joaquin 
district  and  1860  in  the  southern  counties. 

If  the  man  be  living  who  in  1884  said  the  yield  of  earth 
oil  in  California  might  be  100  barrels  per  day,  but  as  the 
Pennsylvania  wells  were  yielding  70,000  barrels  per  day, 
the  oil  product  of  this  State  was  of  little  concern  to  him, 
he  may  not  think  much  of  the  opinion  he  then  expressed 
in  view  of  the  statement  of  production  of  California  earth 
oil  since  1884,  published  elsewhere. 

In  1880  Pennsylvania  was  credited  with  a  product  of 
26,027,600  barrels.  This  total  included  a  small  quantity 
from  New  York.  But,  allowing  Pennsylvania  credit  for 
the  whole  amount,  it  means  only  a  daily  average  of  70,000 
barrels  for  the  365  days  of  the  year.  California  has  been 
doing  much  better  than  that  for  several  years,  while  the 
Pennsylvania  product  has  been  on  the  wane  since  1895, 
the  product  for  1900  being  only  13,258,200  barrels.  In 
1902  California  produced  13,973,500  barrels,  which  is  in 
excess  of  that  produced  by  the  former  State  in  1900.  In 
1910  the  product  of  Pennsylvania  was  only  8,795,000 
barrels. 

Several  other  States  have  passed  the  Pennsylvania  yield 
since  1900.  Ohio  took  the  lead  that  year,  with  a  total  of 
22,362,700  barrels,  and  Virginia  was  a  good  second  with 
16,195,600  barrels.  In  1907,  three  States  had  forged  ahead 
of  Pennsylvania.  The  new  competitors  in  the  order  of 
product  were  Oklahoma,  with  a  yield  of  43,524,100  barrels; 
California,  39,748,400  barrels,  and  Illinois,  24,282,000  bar- 
rels.   These  three  States  held  the  same  rank  in  1908.     Since 


The  West' the  Best  and  California  the  Best  of  the  West.  95 

then  California  has  led  all  other  States  in  this  industry, 
with  Oklahoma  as  a  good  second. 

Another  recognized  authority  on  the  California  oil  prod- 
uct gives  the  yield  for  1912  at  90,074,439  barrels.  The 
same  authority  says  the  prices  have  ranged  from  30c  for 
the  lower  grades  to  $1.25  per  barrel  for  the  higher  grades, 
and  gives  the  value  of  the  product  for  1912  somewhere 
between  $50,000,000  and  $60,000,000.  At  an  average  of 
60c  per  barrel,  this  means  about  $54,000,000. 

The  three  oil  districts  of  the  State  have  been  classed  as 
the  Southern,  the  Coast,  and  the  San  Joaquin.  The  south- 
em  district  embraces  Newhall,  Salt  Lake,  Los  Angeles, 
Whittier,  Puente  and  Fullerton.  The  coast  district  in- 
cludes Watsonville,  Arroyo  Grande,  Lompoc,  Santa  Maria, 
Summerland  and  Santa  Paula.  The  San  Joaquin  district 
comprises  the  counties  in  that  valley  lying  north  of  Teha- 
chapi. 

According  to  the  published  percentages  for  the  past 
five  j^ears.  the  southern  district  furnished  16.80  per  cent 
of  the  product  in  1907,  the  coast  district  21.80  per  cent, 
and  the  San  Joaquin  district  61.40  per  cent.  The  percent- 
ages for  these  districts  for  1912  were  as  follows :  Southern, 
12.30;  coast,  8.50;  San  Joaquin,  79.20. 

The  producing  wells  in  the  San  Joaquin  district  are 
apportioned  as  follows:  Kern  river,  1,643;  McKittredge, 
260;  Midway,  681;  Sunset,  249;  Coalinga,  880;  and  Lost 
Hills,  52.  The  last-named  was  only  opened  in  1910.  The 
wells  in  these  districts  furnished  71,307,800  barrels  of  the 
total  product  for  1912. 

The  oil  output  of  California  last  year  was  larger  than 
any  other  oil  district  in  the  world. 

For  the  last  three  years  California  has  furnished  from 
35  to  40  per  cent  of  the  total  product  of  earth  oil  in  the 
United  States. 


96  The  West  the  Best  and  California  the  Best  of  the' West. 

It  is  a  fortunate  thing  that  all  men  are  not  pessimists. 
The  world  has  little  use  for  any  large  percentage  of  that 
class.  The  only  reason  for  their  existence  at  all  is  the 
restraint  they  exercise  over  the  too  radical  optimists.  It 
is  the  optimist  who  brings  things  to  pass,  who  builds  up 
along  every  line  of  endeavor  in  every  department  of  life, 
and  who  is  never  fully  content  with  the  difficulties  over- 
come and  the  achievements  effected. 

Every  step  of  progress  the  world  has  ever  made  is  the 
result  of  optimism.  Some  are  born  with  that  temperament 
in  superabundance,  and  when  properly  directed  by  sound 
judgment  they  accomplish  much  for  themselves  and  others. 
Those  not  so  fortunate  in  this  inherited  quality  may  be- 
come fairly  good  optimists  if  they  so  choose  by  making 
the  best  of  their  opportunities,  and  always  look  on  the 
bright  side  before  definitely  shaping  their  course  of 
conduct. 

The  earth  oil  industry  of  California,  as  well  as  in  other 
sections  of  the  country,  must  be  credited  to  heroic  optim- 
ists, men  who  are  not  easily  daunted  by  failures.  The 
pioneer  in  any  line  of  endeavor  does  not  always  reap  the 
fruit  of  his  daring.  But  he  opens  the  way  for  others;  and 
these,  after  much  patient  and  persistent  effort,  and  the 
expenditure  of  much  time  and  money,  finally  secure  the 
desired  result. 

There  was  a  two-fold  importance  attaching  the  discov- 
ery of  earth  oil  in  California.  In  the  first  place,  it  sup- 
plied a  long-felt  need  for  a  cheaper  fuel  than  coal,  an 
adequate  supply  of  which  has  never  been  foimd  in  the 
State.  All  manufacturing  industries  where  steam  is  used 
have  been  handicapped  by  high-priced  fuel  and  labor  in 
competing  with  other  sections  of  the  country.  Fuel  oil 
for  the  generation  of  steam  has  greatly  modified  that 
factor  in  the  cost  of  certain  manufactures  where  there  has 


The  West  the  Best  and  California  the  Best  of  the  West.  97 

been  an  abundance  of  the  raw  materials  to  be  converted 
into  finished  products.  It  has  also  been  highly  beneficial 
in  the  transportation  service,  both  on  water  and  land,  as 
well  as  for  domestic  purposes. 

In  the  second  place,  it  has  created  considerable  demand! 
for  machinery  in  connection  with  drilling  wells  and  hoist- 
ing plants,  and  in  the  construction  of  iron  pipe  lines  and 
pumping  stations.  Still  another  factor  is  the  employment 
it  has  given  to  large  numbers  of  men  in  an  entirely  new 
local  field,  both  at  the  wells  and  the  refinery  plants  which 
have  been  created.  In  addition  it  has  added  a  new  and 
important  element  in  the  commercial  relations  of  California 
with  adjacent  States,  with  the  noncontiguous  Territories 
of  Alaska  and  Hawaii,  and  with  various  foreign  markets. 
Besides  all  these  benefits,  it  has  opened  a  new  and  large 
field  for  a  fairly  remunerative  employment  of  large 
amounts  of  capital. 

Exports  of  California  crude  or  fuel  oil  were  first  intro- 
duced in  a  limited  way  in  1902.  The  first  Macedonian  cry 
of  this  kind  came  from  the  sugar  planters  at  the  Hawaiian 
Islands,  who  wanted  a  cheaper  fuel  than  coal  in  operating 
their  mills.  After  some  experiments  with  this  new  fuel  for 
making  steam,  they  forwarded  to  San  Francisco  orders  for 
cargo  lots.  Two  moderate-sized  sail  vessels  were  fitted 
up  with  iron  tanks  to  take  this  freight  to  the  islands.  The 
pioneer  vessels  in  this  new  line  of  the  transportation  serv- 
ice out  of  San  Francisco  were  the  Fullerton  and  the 
Marion  Chilcott.  Four  of  these  cargoes  were  sent  to  the 
islands  during  the  latter  part  of  that  year. 

It  is  evident  that  the  sugar  mill  men  were  satisfied  with 
the  results  of  the  innovation  they  had  introduced,  for  in 
1903  the  two  pioneer  vessels  not  only  found  steady  em- 
ployment in  that  service,  but  four  steamers  were  pressed 
into  the  same  service,  one  of  which  was  built  at  the  Union 


98  The  West  the  Best  and  California  the  Best  of  the  West. 

Iron  Works  expressly  for  that  trade.  These  steamers  had 
tanks  installed  to  carry  the  oil  in  bulk,  and  of  course  made 
much  better  time  than  the  sail  vessels;  and,  as  a  result  of 
that  improvement  in  this  service,  twenty  cargoes  of  oil 
were  sent  to  the  islands  in  that  year.  It  is  needless  to  add 
that  the  Territory  of  Hawaii  has  been  a  good  customer  for 
the  oil  ever  since. 

In  addition  to  this  source  of  demand  in  1904,  British 
Columbia  took  three  cargoes,  and  in  1905  Alaska  and 
South  America  were  added  as  customers  for  California 
crude  or  fuel  oil. 

In  1906  the  Union  Oil  Company  laid  a  pipe  line  across 
the  Isthmus  of  Darien,  and  in  December  of  that  year  a 
cargo  of  fuel  oil  was  sent  from  the  Southern  California 
coast  to  Ancon.  Since  then  this  trade  with  the  Isthmus  has 
steadily  and  rapidly  increased.  Upon  the  completion  of 
the  Panama  Canal,  now  that  so  man}'-  ocean  steamers  are 
using  oil  as  fuel,  if  further  supplies  are  needed  when  pass- 
ing through  that  waterway,  they  can  be  obtained,  as  large 
stocks  will  be  kept  on  hand  at  stations  on  the  Isthmus 
for  that  purpose.  Since  1907  an  occasional  cargo  has  been 
sent  to  Central  American  ports. 

The  first  cargo  shipment  of  refined  oil  in  bulk  left  San 
Francisco  on  the  tank  steamer  Housatonic,  September,  1904, 
for  Shanghai  and  Hankow,  China.  This  cargo  consisted 
of  1,300,000  gallons.  Another  cargo  followed  to  Shanghai 
by  the  steamer  Dakotah  on  the  last  day  of  the  same  year. 
I  Two  more  steamers  were  impressed  into  the  same  service 
with  Shanghai  in  1905.  These  were  the  Appalachee  and 
Winnebago,  and  the  trade  was  nearly  four  times  as  large 
as  in  the  preceding  year. 

In  1906  and  1907  there  were  still  further  and  larger 
gains  in  this  trade  with  China  and  Hongkong,  culminating 
with  a  heavy  movement  in  the  latter  year.     Several  steam- 


The  West  the  Best  and  California  the  Best  of  the  West.  99 

ers  were  added  to  the  fleet  in  those  two  years,  including 
two  sail  vessels,  one  of  which  still  remains  in  the  service. 
New  points  of  distribution  in  China  were  Canton,  Chia- 
kiang,  Foochow,  Taku,  Tientsin. 

The  first  direct  shipments  of  cargoes  of  refined  oil  in  ' 
bulk  from  San  Francisco  to  Japan  and  India  were  made  in 
1906.  Among  the  Japanese  ports  thus  supplied  were  Yoko- 
hama, Hiogo,  Nagasaki,  Itsuka  and  Mororan,  while  the 
ports  in  India  embraced  Bombay,  Calcutta  and  Kurrachee. 
An  occasional  cargo  by  sail  to  Japan  consisted  of  case  oil. 

There  have  been  two  full  cargoes  of  California  refined 
oil  in  tins  sent  to  Manila,  the  first  in  1906  and  the  second 
in  1908. 

There  was  quite  a  light  movement  to  Chinese  ports  in  I 
1909  and  1910.  The  movement  to  Japan  in  the  same  years 
was  lighter  than  previously  or  since.  On  the  whole,  Japan 
has  been  the  largest  foreign  customer  for  this  article,  the 
exports  from  San  Francisco  to  that  country  in  1912  being 
particularly  heavy. 

This  movement  in  California  refined  oil  to  Oriental  ports 
was  introduced  and  has  since  been  maintained  by  the  same 
parties  that  inaugurated  cargo  shipments  of  American 
petroleum  to  that  section  of  the  world  from  Atlantic  ports. 
The  shipments  from  the  Atlantic  side  of  the  country  at 
that  time  were  in  tins  of  five  gallons  each,  two  of  the  tins 
being  enclosed  in  a  wooden  box,  and  the  whole  cargo  for- 
warded by  sail.  At  first  ships  were  chartered  for  that  par- 
ticular trade,  but  later  three  or  four  large  steel  ships  were 
built  for  account  of  the  owners,  and  by  them  were  used 
exclusively  in  that  trade. 

Since  1902  the  shipments  of  California  earth  oil  in 
cargo  and  partial  cargo  lots,  and  in  the  form  of  crude  as 
fuel,  as  well  as  refined  to  China,  Hongkong,  Japan,  Manila, 
British   Columbia,   Isthmus  of  Darien,   South   and   Central 


100  The  West  the  Best  and  California  the  Best  of  the  West. 

America,  Hawaiian  Islands  and  Alaska,  and  the  values  of 
such  annual  shipments,  were  as  follows: 


Years 

Crude  oi 

"  Fuel  Oil 

Refine 

dOil 

Barrels 

Value 

Gallons 

Value 

1902 
1903 
1904 

60,235 
411,000 
453,500 

$  82,237 
576,269 
642,909 

2,925,000 

$  123,250 

1905 

796,025 

1,067,240 

9,588,973 

328,006 

1906 

807,800 

790,017 

39,253,426 

1,535,839 

1907 

854,500 

592,570 

56,866,090 

2,568,314 

1908 

1,294,500 

879,957 

66,917,262 

3,187,692 

1909 

2,100,250 

1,571,907 

47,066,099 

2,093,499 

1910 

2,809,500 

2,086,579 

31,269,665 

1,187,311 

1911 

3,136,403 

2,190,760 

71,370,671 

2,424,322 

1912 

4,231,549 

2,976,130 

91,163,312 

3,868,242 

Total  . 

16,955,262 

$13,456,575 

416,420,498 

$17,316,475 

These  totals  are  verj^  gratifying  to  all  concerned,  and 
reflect  commendable  zeal  on  the  part  of  those  who  have 
made  such  a  large  movement  in  the  past  decade  possible. 
As  will  be  seen,  the  last  year  was  the  best  of  all. 

The  destinations  of  the  foregoing  shipments,  quantities 
and  values,  were  as  follows: 


To 

Crude  Oil 

Refined  Oil 

Barrels 

Value 

Gallons 

Value 

Hawaiian  Islands .... 
British  Columbia 

7,780,241 
311,000 
1,802,452 
3,234,250 
3,553,319 
224,000 

$6,958,465 

270,040 

1,713,579 

1,960,193 

2,325,498 

178,800 

1,200,000 

$      45,000 

Ancon  or  Panama .... 

South  America 

Central  America 

China               

148,454,860 

251,263,901 

13,101,637 

2,400,100 

5,950,690 

Japan      

50,000 

50,000 

10,620,647 

514,550 

Philinnine  Islands 

185,588 

Totals  1902-12..  . 

16,955,262 

$13,456,575 

416,420,498 

$17,316,475 

The  West  the  Best  and  California  the  Best  of  the  West.  101 

A  barrel  of  petroleum  is  reckoned  at  42  gallons,  but 
all  the  shipments  were  in  bulk  and  pumped  into  tanks  on 
the  ships  alongside  shipping  points  and  unloaded  in  the 
same  way  at  ports  of  destination.  Reduced  to  gallons, 
these  barrels  of  crude  oil  are  equal  to  712,121,004  gallons, 
valued  at  $13,456,575.  The  combined  shipments  for  the 
period  covered  aggregate  1,128,541,502  gallons,  valued  at 
$30,773,050.  In  addition,  large  shipments  have  been  made 
to  Oregon,  Washington  and  adjoining  States.  In  February, 
1913,  a  large  cargo  of  California  refined  oil  was  sent  to 
Borneo,  the  first  to  that  section. 


SOIL  AND  OTHER  PRODUCTS  OF  CALIFORNIA 


Some  Califomia  Soil  Products. 

Thus  far  this  story  has  had  to  do  with  a  brief  review 
of  seven  of  the  prominent  underground  resources  of  Cali- 
fornia, namely,  gold,  silver,  quicksilver,  copper,  cement, 
borax  and  mineral  oils.  There  are  forty  other  mineral 
products  in  the  State  that  have  received  more  or  less  atten- 
tion, and  which  in  the  aggregate  have  been  sources  of  con- 
siderable wealth,  while  at  the  same  time  furnishing  employ- 
ment to  many  people  in  various  walks  of  life. 

It  is  in  order  now  to  give  consideration  to  some  of  the 
more  prominent  resources  that  have  been  developed  from 
the  surface  of  the  earth  as  bounded  by  the  geographical 
limits  of  the  State. 

The  expression,  ''Mother  Earth,"  is  an  affectionate  one, 
and  the  application  is  well  deserved.  It  is  the  best  asset 
bestowed  by  the  Creator  upon  His  creatures.  It  is  the  only 
planet  that  the  people  living  upon  it  know  anything  about. 
They  began  their  existence  here,  and  here  the  earthly  part 


102  The  West  the  Best  and  California  the  Best  of  the  West. 

of  their  existence  will  end.  It  is  the  source  of  all  life,  ani- 
mate and  inanimate.  It  is  the  primary  source  of  all  wealth. 
Its  products,  in  their  multifarious  forms,  contribute  to 
make  life  worth  the  living.  While  air  is  essential  to  life, 
people  cannot  live  upon  air  alone,  neither  can  they  live 
without  it.  Air  is  the  last  asset  they  surrender,  and  there 
are  few  perhaps  whoever  surrender  it  willingly. 

There  were  agriculturists  in  California  before  the  ad- 
vent of  the  miners.  Even  in  the  mission  era,  the  Indians 
raised  cattle  and  grain.  The  few  white  people  who  came 
into  the  State  overland  through  Oregon  became  farmers 
before  they  became  miners.  In  the  colony  brought  out 
from  New  York  on  the  ship  Brooklyn  by  Sam  Brannan 
in  1846,  there  was  quite  a  number  of  mechanics  and  farm- 
ers, who  soon  applied  themselves  in  their  new  environment 
to  their  respective  vocations. 

Thus,  even  before  the  discovery  of  gold,  there  were 
white  mechanics  and  farmers  at  work.  Less  than  two  years 
afterwards  most  of  them  forsook  their  shops  and  ranches 
for  the  mines.  Being  on  the  spot  when  and  where  the  gold 
discovery  was  first  announced  to  the  world,  they  had  some 
advantage  over  the  hundreds  and  thousands  who  subse- 
quently arrived  in  the  grand  rush  for  gold. 

Probably  not  one  of  these  new  arrivals  had  any  idea 
of  taking  up  farming  as  an  avocation  in  this  State.  They 
knew  nothing  of  agricultural  conditions  in  this  new  sec- 
tion of  the  country,  and,  besides,  gold  fields  were  more 
attractive  to  them  just  then  than  grain  fields.  They  had 
been  told  that  in  California  there  was  no  rain  for  six 
months  in  the  year,  and  nothing  but  rain  in  the  other  six 
months.  That  was  so  different  from  the  climate  back  East, 
they  were  sure  that  farming  would  never  be  a  success 
here. 


The  West  the  Best  and  California  the  Best  of  the  West.  103 

California  Wool  and  Hides, 

But  when  the  gold  placers  began  to  show  signs  of  ex- 
haustion, some  of  these  miners  turned  their  attention  to 
agricultural  pursuits  in  their  new  surroundings.  Those 
who  first  made  this  break  were  not  long  in  finding  out 
that  good  money  could  be  made  in  raising  grain  and  other 
produce,  and  also  in  the  production  of  cattle,  sheep  and 
other  livestock.  In  fact,  the  results  of  this  new  undertak- 
ing greatly  surprised  them.  The  soil  and  the  climate 
brought  forth  abundant  harvests,  with  a  less  outlay  of 
capital  and  labor  than  such  economics  yielded  in  the  farms 
they  had  worked  in  the  East.  In  addition  the  prices  re- 
ceived for  their  products  were  much  more  remunerative. 
Some  of  those  early  California  farmers  never  went  back 
to  mining,  but  added  acre  to  acre,  and  soon  became 
wealthy. 

Attention  was  first  given  to  the  raising  of  livestock,  and 
then  to  grain,  hay  and  the  usual  lines  of  garden  produce. 
There  were  good  returns  from  livestock  in  the  sale  of  beef 
and  mutton  for  local  consumption,  and  in  the  sale  of  hides, 
tallow,  pelts  and  wool  for  export,  chiefly  to  the  Atlantic 
States.  The  earliest  record  of  the  California  wool  clip  is 
1854,  when  the  product  was  175,000  pounds.  Three  years 
later  it  was  over  1,000,000  pounds.  A  decade  from  that 
time  it  was  over  10,000,000  pounds.  At  the  end  of  another 
decade  it  was  nearly  57,000,000  pounds.  That  was  the 
record  yield,  and  it  was  made  in  1876.  From  that  year 
the  yield  has  been  irregularly  falling  off,  the  total  for  1912 
being  only  14,000,000  pounds. 

The  exports  of  California  wool  have  naturally  followed 
along  the  same  lines  as  the  yearly  product.  There  is  no 
record  of  the  very  early  shipments.  In  1857  there  was 
exported  from  San  Francisco  1,100,000  pounds  wool,  valued 
at   $173,500.      Five    years   later   the    quantity    was    nearly 


104  The  West  the  Best  and  California  the  Best  of  the  West. 

6,000,000  pounds,  valued  at  over  $1,000,000.  In  1868  the 
total  was  over  13,000,000  pounds,  of  a  value  of  $2,423,000. 
It  was  about  the  same  in  the  following  year,  but  in  1870 
there  was  a  considerable  increase  in  the  clip,  and  the  ex- 
ports for  that  year,  including  the  shipment  by  rail  over- 
land, were  over  19,000,000  pounds,  valued  at  $3,500,000. 

In  reviewing  the  trade  for  that  year,  the  writer  did  not 
hesitate  to  make  this  prediction:  "From  present  indica- 
tions, the  current  season  will  be  the  most  active  in  the 
history  of  wool  raising  in  California."  The  record  for  1871 
fully  justified  that  prediction,  the  shipments  for  that  year 
being  22,323,500  pounds,  valued  at  $6,697,000.  Of  the 
quantity  sent  out  of  the  State  in  that  year,  only  2,223,300 
pounds  went  by  the  water  route,  the  remainder  going  by 
the  overland  route. 

The  climax  in  the  exports  of  California  wool  occurred 
about  five  years  later,  though  subsequent  receipts  from 
other  sections  offset  to  some  extent  the  yearly  decrease 
in  California  wool  exports. 

Various  causes  have  contributed  to  the  decadence  of 
this  industry.  Changes  in  the  tariff  were  one  discordant 
element.  More  profitable  uses  for  the  land  formerly  occu- 
pied for  grazing  purposes  was  another.  High  price  of  labor 
in  the  care  of  the  sheep  and  in  the  local  manufacture  of 
the  wool  was  a  good  third.  Back  in  the  sixties  there  were 
two  thriving  woolen  mills  in  San  Francisco,  and  others  in 
the  interior.  Blankets  made  at  these  mills  had  a  conti- 
nental reputation  for  their  superior  quality,  and  found 
ready  sale  here  and  at  the  East.  The  two  local  mills  that 
were  prosperous  in  the  sixties  and  later,  on  ceased  opera- 
tions many  years  ago,  and  no  serious  effort  has  since  been 
made  to  revive  the  industry. 

The  export  trade  in  hides  from  San  Francisco  began 
very   early.     Such   shipments  were   made  long   before   the 


The  West  the  Best  and  California  the  Best  of  the  West.  105 

discovery  of  gold.  The  writer's  record  goes  back  to  1859, 
when  the  number  shipped  to  domestic  Atlantic  ports  was 
151,400.  The  movement  steadily  increased  from  that  year 
until  1865,  when  the  number  shipped  to  the  same  markets 
was  500,000,  valued  at  over  $1,000,000.  Upon  the  opening 
of  the  first  through  railway  line  to  New  York  in  1869, 
these  shipments  were  largely  diverted  to  that  route,  as 
was  also  the  case  with  the  wool  shipments,  and  statistical 
records  of  such  movements  thereafter  were  not  so  easily 
obtainable.  The  wool  shipments  by  the  water  route  in 
1870  were  nearly  11,000,000  pounds,  valued  at  over  $2,000,- 
000. 

Wheat  Crops  and  Exports. 

From  1848  to  1858  California  was  largely  dependent  on 
outside  sources  for  flour  and  wheat.  Oregon  and  the  East- 
em  States  and  South  America  were  the  principal  contrib- 
utors to  the  local  supply  in  that  decade. 

The  cereal  harvest  years  in  California  date  from  July 
1st.  First  lots  of  new  crop  grain  have  frequently  arrived 
in  June,  and  in  some  instances  in  May. 

For  the  five  cereal  years  ending  June  30,  1860,  the  ex- 
ports of  flour  from  San  Francisco  were  232,000  barrels,  and 
of  wheat  416,000  centals.  One-half  of  the  flour  was  ship- 
ped in  the  first  of  those  cereal  years,  and  all  but  35,000 
centals  of  the  wheat  went  out  in  1859-60.  The  wheat 
exports  for  that  year  were  from  the  crop  of  1859,  which 
also  furnished  about  180,000  centals  that  went  out  in  the 
same  year  in  the  form  of  flour. 

It  is  estimated  that  the  California  wheat  crop  in  1859 
was  upwards  of  1,500,000  centals.  It  is  known  that  the 
receipts  of  flour  and  wheat  at  San  Francisco  in  that  cereal 
year  were  equivalent  to  1,258,000  centals  wheat. 

From  an  estimated  crop  of  at  least  75,000  short  tons 
in  1859,  with  few  exceptions,  there  was  a  steady  increase 


106  The  West  the  Best  and  California  the  Best  of  the  West. 

thereafter  for  many  years.  The  receipts  in  wheat  equiva- 
lents at  San  Francisco  may  be  cited  in  confirmation  of 
that  statement.  These  receipts  for  1859-60  were  equal  to 
62,900  short  tons,  while  in  four  out  of  the  six  following 
cereal  years  they  varied  from  107,000  to  137,000  tons. 

The  two  exceptions  in  that  interval  were  84,000  tons 
for  1861-2  and  27,000  tons  for  1864-5.  The  very  small  re- 
ceipts in  that  year  were  due  to  the  almost  complete  failure 
of  the  crop  in  1864,  incident  to  the  light  rainfall,  1863-4. 

The  crop  for  1865  was  the  largest  produced  up  to  that 
time.  In  those  early  years  the  rainfall  had  much  to  do 
with  the  making  of  the  grain  crops.  In  later  years,  irriga- 
tion has  largely  offset  the  dangers  of  the  dry  winter. 

Since  1878  the  wheat  crop  of  California  has  been  more 
carefully  prepared,  being  based  on  the  quantity  of  flour 
and  wheat  exported,  the  amount  reserved  for  seed  and  the 
local  consumption  per  capita  of  population.  It  is  claimed, 
and  perhaps  rightly,  that  the  results  obtained  in  that  way 
are  much  more  accurate  than  the  Government  reports. 

From  1878  to  1892,  both  years  inclusive,  a  period  of 
fifteen  years,  the  California  wheat  crop  exceeded  1,000,000 
tons  in  eight  of  those  years,  while  in  six  of  the  other  years 
it  varied  from  850,000  to  990,000  tons.  In  1885,  the  only 
other  year  in  that  interval,  it  was  reported  at  743,000  tons. 

The  record  crop  was  that  of  1880,  when  the  yield  was 
1,707,500  tons,  while  in  the  following  year  it  was  1,359,000 
tons,  and  two  years  later  it  was  1,441,500  tons.  Those 
years  were  the  best  in  the  history  of  this  cereal.  There 
has  been  no  one  million  ton  crop  since  1892,  and  in  1905 
the  yield  was  the  smallest  since  1865. 

So  long  as  the  wheat  acreage  in  California  yielded  well, 
and  remunerative  prices  were  received  by  the  growers, 
there  was  some  inducement  to  cultivate  that  cereal.  But 
as  soon  as  other  uses  for  the  land  became  more  profitable, 


The  West  the  Best  and  California  the  Best  of  the  West.  107 

wheat  culture  was  practically  abandoned.     That   was  the 
only  sensible  course  to  pursue. 

From  the  daily  purchases  in  the  early  years  by  one  of 
the  San  Francisco  millers,  it  is  learned  that  in  1859  for 
good  to  choice  milling  wheat  he  paid  from  $2.87  in  March 
to  $1.38  in  November.  In  the  following  year  the  range 
was  $1.80  to  $1.25.  and  in  1861  it  was  $1.90  to  $1.37. 
Wheat  was  less  plentiful  in  1862  and  the  extremes  were 
$2.55  to  $1.55.  There  was  a  larger  crop  that  year,  and 
the  range  for  1863  was  $1.80  to  $1.30.  While  in  January, 
1864,  he  was  able  to  buy  at  $1.40,  the  price  thereafter  rap- 
idly advanced,  owing  to  the  failure  of  the  crop  that  year, 
and  the  range  for  the  last  six  months  was  $3.10  to  $4. 
Before  the  next  crop  matured  he  paid  $5  for  wheat,  both 
in  March  and  April.  In  the  following  August,  when  the 
new  crop  became  available,  he  was  able  to  satisfy  his  wants 
at  $1.70.  In  1865  he  paid  from  $2.25  to  $1.45  per  100 
pounds  for  the  wheat  needed  that  year. 

When  the  price  of  wheat  fell  below  one  cent  per  pound 
California  ranchers  concluded  that  they  would  try  some 
other  form  of  cultivation.  The  fact  that  wheat  has  since 
been  selling  at  $1.50  and  upwards  has  little  attraction  to 
them. 

Destinations   of  Flour  Exports. 

San  Francisco  began  exporting  flour  before  it  had 
ceased  importing  it,  and  before  it  began  to  export  wheat. 
The  first  shipments  of  flour  were  made  as  early  as  1856.  In 
that  year  these  exports  embraced  4,200  barrels  to  China  or 
Hongkong,  1,400  barrels  to  Honolulu,  900  barrels  to  Mexico 
and  63,400  barrels  to  Australia,  making  a  total  of  nearly 
70,000  barrels  for  that  year,  a  pretty  good  record  in  the 
eighth  year  after  the  discovery  of  gold. 

However,  the  shipments  for  the  next  three  years  were 
only  20,800  barrels,  and  to  the  same  destinations.     Austra- 


108  The  West  the  Best  and  California  the  Best  of  the  West. 

lia  took  the  bulk  of  the  shipments  in  1856,  but  only  1,700 
barrels  in  1859,  and  not  a  single  barrel  in  the  two  inter- 
mediate years. 

In  1860  Japan  took  a  small  consignment  of  California 
flour,  and  36.400  barrels  were  sent  to  Great  Britain.  Later 
other  countries  were  listed  as  customers  for  California 
flour.  These  embraced  Central  and  South  America,  New 
Granada,  British  Columbia,  Asiatic  Russia,  Philippine  Is- 
lands, Society  Islands,  Brazil  and  domestic  Atlantic  ports. 

From  4,200  barrels  flour  sent  to  China  or  Hongkong  in 
1856,  this  trade  with  those  destinations  increased  irregu- 
larly until  1902,  when  the  total  exceeded  620,000  barrels. 
That  was  the  record  year  in  this  movement.  But  for  the 
competition  from  Oregon  and  Washington,  the  movement 
toward  that  total  would  have  been  more  rapid,  and  the 
total  for  that  year  would  have  been  much  larger.  In  1906 
these  shipments  to  China  were  only  138,000  barrels,  and  in 
the  cereal  year  of  1909-10  only  3,500  barrels.  In  the  last 
two  calendars  the  shipments  to  China  were  48,000  and 
42,000  barrels,  respectively. 

Great  Britain  has  been  the  next  best  customer  for  Cali- 
fornia flour.  For  nearly  a  half  century  that  country  has 
been  taking  supplies  of  this  character  without  a  single 
break  in  the  annual  demand,  except  in  the  year  1865,  when, 
because  of  the  drouth  of  the  previous  year,  the  price  of 
the  article  in  the  San  Francisco  market  was  above  the 
export  limit. 

In  the  first  ten  years  of  this  movement  the  shipments 
to  Great  Britain  were  251,400  barrels.  In  1870  and  1872 
the  exports  were  only  8,000  barrels,  but  for  the  decade  end- 
ing with  1879  they  were  1,417,000  barrels. 

The  movement  culminated  with  the  decade  ending  with 
1889,  when  the  total  was  4,468,850  barrels,  or  an  average 


The  West  the  Best  and  California  the  Best  of  the  West.  109 

of  446,000  barrels  per  annum.     The  record  yearly  total  was 
made  in  1883,  when  the  exports  were  744,800  barrels. 

In  the  very  next  decade  there  was  a  marked  shrinkage 
in  this  movement,  the  total  for  1890  to  1899  being  only 
1,694,400  barrels.  For  the  following  five  years  the  exports 
were  217,000  barrels,  and  that  ended  the  business. 

The  best  third  customer  for  California  flour  has  been 
Central  America.  There  has  been  no  break  in  that  trade 
from  the  start,  and  it  began  very  early.  The  yearly  ex- 
ports have  never  been  as  large  as  in  the  other  two  sources 
of  demand  previously  mentioned,  but  it  has  been  unremit- 
ting, varying  from  a  few  thousand  barrels  up  to  100,000 
in  1889,  and  since  that  year  from  100,000  to  over  200,000 
barrels  per  annum.     The  total  for  1912  was  243.600  barrels. 

Considerable  California  flour  has  been  shipped  to  several 
other  destinations.  The  Hawaiian  Islands  took  660,000 
barrels  between  1874  and  1893.  In  the  same  interval  Brit- 
ish Columbia  took  88,400  barrels;  Mexico,  92,600  barrels; 
Panama,  287,100  barrels;  Society  Islands,  204,600  barrels; 
Russian  Asia,  177,800  barrels;  Philippine  Islands,  100,500 
barrels,  and  several  smaller  markets,  109,600  barrels. 

Australia  took  63,400  barrels  in  1856  and  55,400  barrels 
in  1861,  but  the  total  up  to  and  including  1855  was  only 
186,300  barrels.  In  1866,  owing  to  a  failure  of  the  crops 
in  the  Colonies,  the  shipments  were  119,600  barrels.  Again, 
in  1896,  and  for  the  same  reason,  the  total  was  263,000 
barrels.  In  ten  of  the  intervening  years  the  annual  exports 
to  the  Colonies  varied  from  2,500  to  40,000  barrels. 

During  the  two  decades  ending  with  1893,  South 
America  took  337,500  barrels.  This  total  includes  115,300 
barrels  in  1891.  The  next  important  movement  in  that 
direction  began  in  1899  and  continued  for  three  years,  dur- 
ing which  the  shipments  were  309,000  barrels. 

In  the  years  1867  and  1868  California  shipped  the  large 


110  The  West  the  Best  and  California  the  Best  of  the  West. 

total  of  386,000  barrels  flour  to  domestic  Atlantic  ports, 
a  small  portion  going  by  steamer  via  Panama  at  a  high 
freight  as  compared  with  consignments  by  sail. 

Some  idea  of  the  magnitude  and  value  of  the  export 
trade  in  flour  by  the  water  routes  may  be  obtained  by  the 
statement  that  in  twenty  years  ending  with  1893  these  ship- 
ments were  17,317,300  barrels,  valued  at  $78,462,200.  A 
statement  of  the  annual  exports  of  flour  from  San  Fran- 
cisco since  1860  will  be  found  elsewhere. 

Destinations  of  Wheat  Exports. 

There  was  much  better  success  in  the  wheat  movement 
with  the  European  markets.  The  hard  wheat  of  California 
was  just  what  the  English  millers  wanted,  and  for  some 
years  it  commanded  a  higher  price  than  consignments  from 
other  sources. 

As  far  back  as  memory  can  recall,  Great  Britain  has 
been  the  world's  best  customer  for  foreign  wheat,  because 
of  the  inability  to  raise  enough  for  its  own  wants,  despite 
the  liberal  use  of  fertilizers.  The  appreciation  accorded  to 
California  wheat  by  the  English  millers  was  all  the  assur- 
ance needed  to  stimulate  production  to  the  utmost  limit. 
The  only  drawback  was  the  long  haul  against  producers 
nearer  the  Atlantic  seaboard.  But  it  was  water  carriage 
all  the  way  from  San  Francisco,  against  a  combination  of 
rail  and  water  on  the  other  side  of  the  country,  at  least 
during  part  of  the  year. 

At  first  it  was  thought  there  might  be  some  difficulty 
in  attracting  enough  ships  to  San  Francisco  to  insure 
reasonable  freight  rates  on  the  wheat  cargoes  to  go  for- 
ward. The  want  of  coal  in  California,  while  a  hardship 
to  some,  was  a  great  benefit  to  the  California  wheat  raiser, 
as  it  brought  many  vessels  so  laden  to  San  Francisco  direct 


The  West  the  Best  and  California  the  Best  of  the  West.  Ill 

from  Europe  or  by  way  of  Australia,  to  load  back  with 
grain. 

California  shipped  very  little  wheat  to  Great  Britain, 
or  any  other  European  country,  prior  to  1860.  In  that 
year,  however,  it  shipped  458,500  centals  to  Great  Britain, 
and  from  that  time  on  the  movement  was  uninterrupted 
until  the  last  few  years. 

From  1861  to  1865,  both  years  inclusive,  these  shipments 
to  that  country  were  2,728,400  centals,  including  1,022,600 
centals  in  the  first  of  those  years  and  31,200  centals  in  the 
last  year.  The  light  movement  for  that  year  was  due  to 
the  failure  of  the  crop  in  1864. 

In  1866  these  shipments  embraced  1,048,200  centals, 
valued  at  $1,830,500,  to  Great  Britain,  and  24,862  centals, 
valued  at  $40,436,  to  France.  That  was  the  first  cargo 
sent  to  France,  but  it  led  to  considerable  shipments 
in  the  subsequent  years,  both  to  that  and  other  European 
countries. 

As  many  of  the  grain  cargoes  cleared  from  San  Fran- 
cisco from  that  time  on  were  headed  for  Cork  for  orders, 
with  the  option  of  any  port  in  the  United  Kingdom  or  the 
Continent,  it  is  impossible  to  segregate  those  European 
shipments  of  California  wheat,  and  no  attempt  will  be 
made  to  secure  that  result. 

In  1869  these  shipments  were  4,785,900  centals,  valued 
at  $8,359,100,  and  in  1870  they  were  4,124,800  centals, 
valued  at  $7,668,500.  Because  of  the  light  yield  in  1870, 
the  exports  for  the  following  year  were  only  945,000  cen- 
tals, valued  at  $2,201,000. 

Good  wheat  crops  were  raised  in  the  next  few  years, 
and  this  resulted  in  greatly  increasing  these  exports.  In 
1872  the  total  was  6,012,400  centals,  valued  at  $10,568,600, 
and  in  the  following  year  9,155,000  centals,  valued  at  $18,- 
648,500.     Attention  is  called  to   the  high  price   at   which 


112  Tlie  West  tJie  Best  and  California  the  Best  of  the  West. 

these  exports  were  manifested.  If  such  values  could  have 
been  maintained  in  the  subsequent  years,  there  would  have 
been  no  occasion  for  the  diminished  yield  in  later  years. 

The  large  wheat  crops  in  California  in  1880  and  1881 
were  followed  by  correspondingly  large  exports  to  Europe, 
the  movement  aggregating  19,916,200  centals  in  1881  and 
18,362,000  centals  in  1882,  or  38,278,200  centals  for  the  two 
years,  or  9,000,000  centals  in  excess  of  any  previous  two 
years. 

Since  the  culmination  of  this  movement  in  those  two 
years  the  yearly  exports  to  Europe  have  varied  from  a 
little  less  than  9,000,000  centals  in  1887  to  about  17,000,000 
centals  in  1891.  The  total  movement  for  two  decades  end- 
ing with  and  including  1893  were  over  230,000,000  centals. 
The  previous  shipments  from  1860  to  1873,  both  years  in- 
clusive, were  over  35,600,000  centals.  Since  1893  the  annual 
exports  have  been  invariably  under  10,000,000  centals,  and 
since  1904  they  have  been  less  than  400,000  centals,  and 
in  one  of  those  years  they  were  only  24,400  centals.  From 
1894  to  1911  they  were  nearly  68,000,000.  From  1860  to 
1911,  both  years  inclusive,  California  sent  333,346,700  cen- 
tals wheat  to  Europe.  In  1912,  less  than  20,000  centals 
wheat  were  shipped  from  San  Francisco  to  all  ports. 

Apart  from  these  shipments  to  Europe,  California  has 
sent  out  the  remainder  of  its  surplus  wheat  in  various 
other  directions  as  opportunities  have  occurred.  The  prin- 
cipal sources  so  supplied  are  Australia,  South  Africa, 
China  and  Japan,  and  the  Eastern  Atlantic  States. 

Shipments  were  made  to  Australasia  as  early  as  1856, 
and  from  that  year  to  1873  the  total  was  2,141,000  centals. 
The  largest  quantity  for  any  one  year  in  that  interval  was 
612,000  centals  in  1866.  From  1874  to  1893,  the  total  was 
840,000  centals,  and  since  then  these  shipments  aggregate 


The  West  the  Best  and  California  the  Best  of  the  West.  113 

3,649,000  centals,  making  a  grand  total  of  6,630,000  centals 
to  the  Colonies. 

South  Africa  usually  draws  its  wheat  supplies  from 
Australia,  but  when  there  has  been  a  failure  of  the  crops 
there,  the  orders  have  been  forwarded  to  the  Pacific  Coast, 
and  California  has  filled  such  orders  to  the  extent  of 
3,702,600  centals. 

The  first  shipments  to  China  were  made  in  1859.  The 
total  exports  to  China  and  Japan  have  never  been  large, 
though  in  1866  they  exceeded  200,000  centals. 

In  1865  there  were  shipments  of  366,800  centals  to  do- 
mestic Atlantic  ports,  and  these  were  maintained  regularly 
for  several  years,  and  in  the  year  1868  they  exceeded 
1,000,000  centals. 

Several  other  markets  have  been  supplied  with  small 
consignments  more  or  less  regularly. 

This  export  trade  in  w^heat  has  added  many  millions  of 
dollars  to  the  wealth  of  the  State. 

Large  Producer  of  High  Grade  Barley. 

The  cultivation  of  barley  in  California  under  American 
labor  probably  began  as  early  as  1850.  It  is  known  that 
there  were  exports  of  the  cereal  as  early  as  1856,  and 
possibly  much  earlier  than  that.  A  consignment  of  4,300 
sacks  to  South  America  in  1856  is  of  record,  and  that  trade 
was  regularly  maintained  for  the  six  subsequent  years,  and 
amounted  to  a  total  of  197,600  sacks  for  the  seven  years. 
In  five  of  the  subsequent  years  prior  to  1874  these  ship- 
ments to  the  same  destination  were  455,400  sacks.  In 
1912  the  quantity  was  126,200  centals. 

Barley  shipments  to  Australia  began  in  1857,  and  from 
that  time  to  1873,  inclusive,  these  shipments  amounted  to 
1,513,000  sacks. 

New  York  took  very  kindly  to  California  barley  as  early 


114  The  West  the  Best  and  California  the  Best  of  the  West. 

as  1857,  when  97,700  sacks  were  sent  to  that  port  by  the 
water  route,  and  in  the  same  way  and  to  the  same  port 
prior  to  1874  the  shipments  were  867,200  sacks.  Barley 
shipments  to  Eastern  points  by  rail  began  in  1873,  and 
were  continued  with  much  regularity  for  many  years  after- 
wards. In  more  recent  years  this  overland  movement  has 
been  less  regular,  but  in  the  aggregate  it  has  amounted  to 
a  considerable  quantity.  The  shipments  to  Eastern  points 
by  the  water  route  since  1874  have  been  even  less  regular 
and  smaller.  From  1874  to  1907  the  shipments  by  water 
to  the  Eastern  States  were  less  than  700,000  sacks,  and  of 
this  quantity  593,700  sacks  went  out  in  1901.  In  1907  the 
shipments  east  by  water  were  191,600  centals,  followed  in 
1910  by  252,200  centals,  and  in  1911  by  2,217,600  centals. 
In  1912  the  quantity  so  shipped  was  464,400  centals,  valued 
at  $868,000. 

Great  Britain  showed  little  interest  in  California  barley 
until  1873,  but  since  then  her  maltsters  have  not  let  a  year 
go  by  without  ordering  liberal  quantities.  This  is  all  the 
more  remarkable  because  of  the  prominence  of  Canada  as 
a  raiser  of  barley  of  good  quality  and  in  large  quantity. 

The  total  shipments  of  California  barley  direct  to 
Europe  prior  to  1873  were  only  21,500  centals.  In  the  next 
five  years  the  shipments  were  330,000  centals.  From  1878 
to  1887,  the  shipments  to  Europe  were  1,736,300  centals. 
In  the  next  decade  they  were  13,973,500  centals,  and  in 
the  following  decade,  the  total  was  further  advanced  to 
21,930,900  centals.  Since  1907  these  yearly  exports  have 
been  2,271,400  centals  in  1908,  followed  by  1,682,700  centals 
in  1909,  and  for  the  next  two  years  3,681,900  centals  and 
1,507,300  centals,  respectively.  In  1912  the  barley  ship- 
ments to  Europe  were  1,897,000  centals,  valued  at  $2,- 
960,500. 

Apart  from  Great  Britain,  Australia  and  South  America, 


The  West  the  Best  and  California  the  Best  of  the  West.  115 

the  next  largest  shipments  have  been  to  the  Hawaiian 
Islands,  and  for  feed  purposes.  Including  small  quantities 
sent  to  other  Pacific  islands,  the  total  to  all  these  islands 
from  1858  to  1887,  a  period  of  thirty  years,  was  only 
126,600  centals.  In  the  very  next  decade  these  shipments 
to  the  same  sources  were  1,441,500  centals  and  in  the  fol- 
lowing decade  3,602,700  centals.  For  the  four  years  end- 
ing with  1911  they  were  1,528,700  centals.  In  1912,  the 
total  was  277,000  centals,  valued  at  $481,600. 

California  is  justly  proud  of  its  barley  record.  It 
stands  unrivaled  in  American  history,  both  as  to  quality 
and  quantity,  and  was  given  the  silver  medal  at  the  recent 
Brewers'  Exposition.  Its  Chevalier  variety  has  no  superior 
in  the  world,  always  commanding  a  higher  price  than  the 
best  known  brewing  quality.  There  has  never  been  any 
difficulty  in  disposing  of  all  the  Chevalier  barley  raised 
in  the  State.  This  is  also  true  of  the  best  brewing  descrip- 
tions. The  demand  for  feed  kinds  in  some  years  has  been 
less  urgent.  However,  the  surplus  carried  over  from  one 
crop  into  that  of  the  succeeding  year  has  never  been  very 
large. 

It  is  the  chief  barley  State  in  the  country,  no  other 
State  equaling  it  in  the  volume  of  product,  unless  it  be 
Minnesota,  which  in  some  recent  years  is  claimed  to  have 
surpassed  it.  If  the  statements  of  the  United  States  De- 
partment of  Agriculture  in  reference  to  crop  reports  are 
as  wide  of  the  mark  in  Minnesota  as  they  are  in  California, 
they  are  of  little  value.  These  reports  credit  California 
with  having  increased  its  barley  crop  from  12,263,500 
bushels  in  1898  to  43,400,000  bushels  in  1910.  It  is  not 
known  that  any  Californian  ever  claimed  a  barley  crop  of 
over  1,000,000  short  tons  for  his  State.  The  report  of  the 
grain  department  of  the  San  Francisco  Chamber  of  Com- 
merce reported  a  crop  of  517,600  tons  for  1911,  which  was 


116  The  West  the  Best  and  California  the  Best  of  the  West. 

somewhat  smaller  than  the  crop  of  1910.  It  is  thought  the 
crop  of  1912  was  still  smaller.  The  only  uncertain  element 
as  to  the  correctness  of  these  totals  is  the  quantity  set  apart 
for  local  consumption. 

The  price  of  barley  has  much  to  do  with  its  culture  in 
California.  In  other  sections  of  this  country,  and  in  some 
parts  of  Canada,  where  grain  land  is  not  so  high,  the  price 
of  this  cereal  cuts  little  figure.  This  factor  was  used  with 
much  force  in  this  State  when  the  reciprocity  treaty  with 
Canada  was  under  discussion  several  months  ago.  The 
removal  of  the  duty  which  would  have  followed  in  the 
adoption  of  that  measure,  it  was  claimed,  would  have  put 
this  industry  out  of  business. 

California  has  practically  given  up  wheat  raising  for 
export,  and  since  then  has  given  more  attention  to  barley. 
Any  event  that  would  lead  to  the  abandonment  of  the 
barley  industry  cannot  be  viewed  with  complacency.  So 
long  as  a  good  market  can  always  be  found  for  the  best 
brewing  grades  of  barley,  for  which  California  has  long 
been  noted,  the  raising  of  that  cereal  should  be  continued, 
at  least  up  to  the  present  volume  of  production. 

Considerable  prominence  is  being  given  to  San  Fran- 
cisco as  a  maritime  port,  especially  in  view  of  the  early 
completion  of  the  Panama  Canal.  Two  things  are  abso- 
lutely essential  to  complete  success  in  this  matter.  Vessels 
must  be  able  to  get  cargoes  for  San  Francisco,  and  to  find 
outward  cargoes  awaiting  them  here  upon  their  arrival. 
Barley  and  wheat  are  the  best  outward  cargoes  for  such 
vessels,  and  the  cultivation  of  both  cereals  should  receive 
greater  attention. 

Other  Soil  Crops  of  the  State. 

The  minor  grain  crops  of  California  have  not  been  neg- 
lected  to   any  great   degree,   and   they   must   not  be   over- 


The  West  the  Best  and  California  the  Best  of  the  West.  117 

looked  in  this  review.  Among  these  are  corn,  rye,  buck- 
wheat, oats  and  beans.  In  former  years  some  whole  or 
partial  cargoes  of  rye  were  shipped  to  Europe  with  profit. 
Beans  have  figured  regularly  in  the  exports  for  many  years. 
In  fact,  California  has  been  regarded  as  the  second  State 
of  the  country  in  bean  culture.  Lima  beans  grown  in  this 
State  have  been  much  sought  after.  No  attempt  has  been 
made  to  extend  the  crops  of  corn,  oats,  or  buckwheat 
beyond  the  wants  of  the  home  market,  nor  is  there  any 
particular  reason  for  doing  it. 

The  hay  crop  of  a  State  seldom  gets  much  notice  in  the 
public  press,  and  yet  it  is  an  essential  crop,  and  one  of  the 
few  crops  incident  to  every  arable  section  of  the  world. 
The  farm  value  of  the  hay  crop  of  the  United  States  in 
1911  is  given  by  the  Department  of  Agriculture  at  $694,- 
570,000.  In  the  previous  year  it  was  given  by  the  same 
authority  at  $747,769,000.  The  value  of  the  wheat  crop  of 
the  United  States  for  the  same  two  years  was  $543,000,000 
and  $561,000,000,  respectively. 

The  farm  value  of  the  hay  crop  in  California  in  1911, 
as  given  by  the  same  authority,  was  $13,352,000.  This 
State  has  made  alfalfa  hay  quite  a  feature,  and  three  crops 
of  that  kind  of  hay  have  been  gathered  annually  from  the 
same  acreage.  Probably  no  other  crop  requires  so  little 
attention,  and  at  the  same  time  nets  such  good  returns. 

California  the  Leading  Fruit  State. 

The  law  of  evolution,  if  not  universal  and  inexorable, 
is  certainl}^  quite  common.  Gold  was  California's  first  lead- 
ing industrj^  and  it  held  that  place  for  many  years.  Grain 
finally  supplanted  it,  and  took  the  lead.  Fruit  eventually 
wrested  the  laurels  from  both  grain  and  gold,  and  assumed 
first  place  as  the  greatest  wealth-producing  industry  of  the 
State.     It  still  holds  that  place,  and  is  likely  to  retain  it 


118  The  West  the  Best  and  California  the  Best  of  the  West. 

for  some  time,  despite  the  prominence  attained  by  the 
earth  oil  industry  in  the  last  few  years  and  its  promising 
outlook. 

In  1870  a  leading  San  Francisco  fruit  firm  prepared 
a  statement  of  the  fruit  crops  for  that  year  based  on  the 
consignments  received  in  San  Francisco.  This  statement 
included  over  twenty  varieties  of  deciduous  and  citrus 
fruits  from  every  county  in  the  State  as  then  divided,  ex- 
cept four. 

The  gross  weight  of  these  consignments  of  deciduous 
fruit  received  in  that  year  was  over  31,000  tons,  and  the 
prices  realized  for  the  same  amounted  to  nearly  $2,300,000. 
The  citrus  fruit  and  melons  received  the  same  year  realized 
over  $92,000. 

Even  then,  the  fruit  industry  of  California  was  looked 
upon  as  of  some  importance  by  the  comparatively  few 
engaged  in  the  business,  but  it  is  doubtful  if  any  of  them 
seriously  thought  it  would  ever  attain  the  proportions  since 
realized.  HoAvever,  the  climax  of  development  is  yet  in 
the  future. 

Prior  to  the  opening  of  through  railway  service  be- 
tween the  Pacific  Coast  and  the  Atlantic  seaboard,  there 
was  little  inducement  to  develop  the  fruit  industry  of  Cali- 
fornia beyond  the  wants  of  the  State  and  contingent  terri- 
tory. Such  railway  service  had  been  in  course  of  con- 
struction for  some  time,  and  in  May,  1869,  the  last  spike 
in  the  rails  completing  such  connection  between  the  Union 
Pacific  and  the  Central  Pacific  was  driven. 

It  then  became  possible  for  the  first  time  to  ship  ripe 
fruit  across  the  Continent  from  San  Francisco  to  New 
York,  and,  of  course,  to  all  terminal  points  in  the  inter- 
mediate territory.  With  these  greatly  enlarged  markets 
for  California  fruit,  the  inducement  to  expand  the  business 
was  realized.     New  acreage  was  secured  and  immediately 


The  West  the  Best  and  California  the  Best  of  the  West.  119 

covered  with  new  trees  and  new  vines.  This  event  had 
already  been  anticipated,  and  before  the  overland  railroad 
had  been  in  operation  a  single  year,  ripe  fruit  freight  was 
being  put  aboard  cars  for  Eastern  cities.  The  success  of 
these  shipments  stimulated  further  enlargement  of  the  fruit 
bearing  area  in  the  State.  Still  further  enlargement  of  the 
industry  occurred  a  few  years  later  in  the  opening  of  a 
second  and  a  third  through  railway  line  across  the  Conti- 
nent by  way  of  Arizona  on  the  south  and  Puget  Sound  on 
the  north. 

In  1870,  the  first  full  year  of  the  operation  of  the 
through  railway  service  with  the  East,  less  than  50  tons 
of  fresh  fruit  was  carried  out  of  the  State.  From  that 
small  beginning  there  has  been  a  steady  development,  so 
that  in  1910  there  was  over  200,000  tons  of  deciduous  fruit 
shipped  out  of  the  State  over  the  lines  of  the  Southern 
Pacific  and  Santa  Fe.  From  a  correspondingly  small  begin- 
ning the  shipments  of  citrus  fruit  rose  to  446,000  tons. 

Prior  to  1910  the  shipments  by  rail  and  water  were  not 
segregated,  but  the  railways  have  always  monopolized  most 
'of  the  fresh  fruit  trade.  In  1890  the  shipments  of  decidu- 
ous fruit  were  34,000  tons,  together  with  34,200  tons  citrus 
fruit.  These  were  the  results  at  the  end  of  twenty  years 
of  through  railway  service.  At  the  end  of  the  next  twenty 
years,  or,  rather,  in  1909,  the  last  year  when  the  rail  and 
water  shipments  were  combined,  the  totals  were  203,000 
tons  deciduous  fruit  and  476,000  tons  citrus  fruit.  In  1911 
the  shipments  exclusively  by  the  Southern  Pacific  and 
Santa  Fe  railways  were  188,000  tons  deciduous  fruit  and 
581,000  tons  citrus  :§ruit. 

The  shipments  of  dried  fruit,  exclusive  of  raisins,  by 
water  and  rail,  were  32,300  tons  in  1890  and  over  90,000 
tons  in  1900 ;  and  in  1909,  the  last  year  of  the  existence  of 
that  combination,  they  were  155,000  tons.     In  the  next  two 


120  The  West  the  Best  and  California  the  Best  of  the  West. 

years,  by  rail  alone,  they  were   129,000  tons  and  114,500 
tons,  respectively. 

There  has  been  a  good  excuse  for  these  comparatively 
light  shipments  of  dried  fruit  by  rail  since  1909.  The 
decrease  is  due  entirely  to  the  increased  shipments  by  the 
water  routes,  incident  to  an  enlarged  and  more  frequent 
service,  quicker  despatch  and  lower  freight  charges. 

In  1908  the  water  shipments  of  dried  fruit  were  14,940,- 
300  pounds.  In  the  following  three  years  they  were  69,- 
000,000  pounds,  81,000,000  pounds  and  91,000,000  pounds, 
respectively.     Prunes  led  in  these  shipments. 

Raisin  shipments  by  rail  and  water  in  1890  were  20,600 
tons,  and  in  1894  they  were  47,000  tons.  This  was  the 
record  total  in  that  movement  until  1904,  when  over  54,000 
tons  were  shipped  in  the  same  way.  The  best  all-rail 
shipments  were  67,000  tons  in  1910. 

Canned  fruit  shipments  in  1890  were  40,000  tons  by  rail 
and  water.  The  largest  yearly  total  in  that  way,  including 
canned  vegetables,  was  104,600  tons  in  1907.  Since  then 
the  rail  shipments  alone  have  varied  from  71,000  to  85,000 
tons. 

California  has  made  good  progress  in  the  cultivation  of 
many  kinds  of  fruit  and  nuts.  Among  the  latter  are 
almonds  and  walnuts.  The  almond  crop  has  increased  in 
twenty-five  years  from  less  than  100  tons  to  3,500  tons, 
and  the  walnut  crop  from  50  tons  to  12,000  tons  in  the 
same  interval.  These  nuts  have  found  ready  sale  at  home 
and  abroad.  The  shipments  by  rail  and  water  in  1902  were 
11,000  tons,  and  in  1912  over  12,000  tons  exclusively  by 
rail. 

In  fruit  culture  California  has  developed  some  note- 
worthy features,  both  in  variety  and  volume.  There  is 
probably  no  State  in  the  country  that  can  show  such  an 
extensive  variety,  both  tropical  and  semi-tropical.     Prune 


1 


The  West  the  Best  and  California  the  Best  of  the  West.  121 

cultivation  is  one  of  her  strong  features,  and  has  given  to 
the  State  an  international  reputation.  Her  dried  prunes 
have  been  exported  in  good  volume  to  all  the  leading  Euro- 
pean countries,  in  some  of  which  prunes  are  extensively 
cultivated.  These  shipments  go  into  the  millions  of  pounds. 
From  less  than  4,000  tons  a  quarter  of  a  century  ago, 
the  prune  crop  of  California  has  been  increased  to  nearly 
100,000  tons.  That  was  the  record  yield  of  1902.  Since 
then  the  crop  has  varied  from  about  40,000  to  90,000  tons. 
For  the  past  twenty  years  the  prune  crop  of  California  has 
averaged  $3,235,000  per  annum. 

Grape  growing  is  another  feature.  No  other  State  has 
so  many  and  such  extensive  vineyards.  These  vines  furnish 
great  quantities  of  table,  raisin  and  wine  grapes  for  home 
use  and  the  export  trade,  and  add  millions  of  dollars  of 
wealth  to  the  State  every  year.  California  raisins  have 
captured  the  country,  and  there  is  no  longer  any  need  of 
foreign  importations.  California  can  supply  the  country 
with  all  the  wine  it  consumes. 

Olive  culture  is  another  noteworthy  feature  of  the  fruit 
industry  in  this  State.  Its  olives  and  its  olive  oil  have 
taken  "high  rank  and  enjoy  much  popularity. 

California  produced  its  first  raisins  in  1870.  The  quan- 
tity made  that  year  was  1,200  boxes  of  20  pounds  each. 
This  pioneer  effort  did  not  attract  much  attention.  At  that 
time  San  Francisco  merchants  did  not  think  much  of  the 
enterprise,  and  rather  scouted  the  idea  that  foreign  raisins 
would  eventually  be  supplanted  by  the  home  article.  In 
another  part  of  this  story  will  be  found  a  statement  of  the 
annual  product  of  California  raisins. 

The  California  wine  industry  has  had  a  remarkable 
development  since  it  was  assumed  as  a  mercantile  enter- 
prise. Like  the  olive  culture,  the  beginning  was  by  the 
Franciscans  in  the  seventeenth  century.     An  olive  orchard 


122  The  West  the  Best  and  California  the  Best  of  the  West. 

was  started  in  San  Diego  in  1769,  and  now  there  are  over 
1,000  trees  in  each  of  the  thirty-eight  counties  from  which 
reports  have  been  received.  In  1911  these  olive  orchards 
are  estimated  to  have  produced  from  750,000  to  900,000 
gallons  olive  oil  and  over  1,000,000  gallons  pickled  olives. 

Wine  making  in  California  for  private  use  was  made 
as  early  as  1774  by  the  Mission  Fathers  from  the  Mission 
grape.  In  the  early  sixties  wine  making  in  the  State  was 
taken  up  as  a  commercial  enterprise.  Since  then  there  has 
been  expansion  and  improvement  in  all  departments  and 
in  all  directions.  These  changes  have  had  to  do  with  the 
selection  of  the  right  soil,  the  best  variety  of  plants,  the 
subsequent  processes  of  the  juice  until  the  finished  article 
has  been  put  into  the  hands  of  consumers. 

The  vineyards  of  California  are  of  variable  size.  The 
late  Senator  Stanford  had  a  vineyard  in  Tehama  County 
of  over  3,800  acres,  on  which  there  were  over  3,000,000 
vines.  It  has  been  claimed  that  this  was  the  largest  vine- 
yard in  the  world.  California  has  a  noted  vineyard,  if  a 
single  vine  can  be  so  designated.  This  vine  was  planted 
by  a  Mexican  woman  who  died  in  1865  at  the  age  of  107 
years.  The  vine  was  planted  in  the  latter  part  of  the 
seventeenth  century,  and  has  been  credited  with  a  yield  of 
from  10,000  to  12,000  pounds  of  grapes  in  a  single  year. 

Statistics  of  the  production  of  California  wine  for  com- 
mercial purposes  date  back  to  1866,  when  the  yield  was 
given  at  2,250,000  gallons.  In  1880  the  yield  was  reported 
at  over  10,000,000  gallons  for  the  first  time.  Ten  years 
later  it  was  20,000,000  gallons.  That  total  was  more  than 
doubled  in  1902,  but  two  years  later  it  was  less  than 
30,000,000  gallons.  The  yield  for  1911  was  reported  at 
49,280,000  gallons,  a  record  total. 

A  very  large  amount  of  capital  has  been  invested  in 
grape  raising  and  wine  making  in  this  State.    In  some  cases 


The  West  the  Best  and  California  the  Best  of  the  West.  123 

this  capital  covers  both  branches.  There  are  several  quite 
large  wineries  in  operation,  and  most  of  these  plants  are 
up  to  date  in  every  particular.  For  several  years  Cali- 
fornia wine  has  been  held  up  to  a  high  standard,  and  is 
quite  the  equal  of  the  finest  imported  brands. 

The  exports  of  wine  from  the  State  form  another  part 
of  this  story,  to  be  found  elsewhere  in  tabular  form. 

Recently  the  business  of  wine  making  in  California  has 
been  put  upon  a  more  permanent  and  i^rofitable  basis. 

In  the  production  of  citrus  fruit  California  has  achieved 
an  enviable  reputation.  The  southern  counties  of  the  State 
are  clearly  entitled  to  the  credit  of  inaugurating  this  valu- 
able adjunct  to  the  many  other  profitable  industries  for 
which  the  Commonwealth  has  become  noted.  The  same 
section  has  ever  maintained  its  supremacy  in  this  trade, 
though  other  counties  in  the  central  and  northern  parts 
of  the  State  have  in  recent  years  made  considerable  prog- 
ress along  the  same  lines. 

From  a  shipment  of  705,000  boxes  oranges  in  the  crop 
year  of  1886-7  in  2,200  cars,  the  trade  expanded  in  ten 
years  to  2,671,000  boxes  in  7,682  cars.  Seven  years  later 
the  record  was  10,360,000  boxes  in  27,000  cars.  A  yearly 
average  of  that  quantity  has  since  been  maintained,  the 
total  for  1908-9  was  12,049,400  boxes  in  34,400  cars.  It 
was  considerably  less  in  the  following  year,  but  the  ship- 
ments in  1910-11  filled  46,400  cars,  a  record  number,  and 
the  following  year  the  movement  was  about  the  same. 

In  lemon  culture  the  progress  has  been  proportionately 
as  good,  based  on  the  relative  demand  for  the  two  kinds  of 
citrus  fruit.  Less  than  4,000  boxes  lemons  were  shipped  in 
1886-7.  Ten  years  later  the  total  was  460,000  boxes.  It 
was  over  1,000,000  boxes  in  1900-1.  For  the  past  three  years 
the  shipments  have  exceeded  2,000,000  boxes  per  annum. 

In  the   production   of  citrus  fruit,   grapes,   raisins   and 


124  The  West  the  Best  and  California  the  Best  of  the  West. 

wine,    California    occupies    a    unique    position    among    the 
forty-eight  States  of  the  country. 

The  canners  and  the  fruit  driers  have  been  of  great  serv- 
ice in  conserving  the  interests  of  the  fruit  growers.  In 
these  forms  they  have  not  only  put  vast  quantities  of  vari- 
ous kinds  of  fruit  beyond  decay,  but  have  made  it  possible 
to  ship  as  safely  by  water  as  by  rail,  and  at  lessened  cost 
for  transportation. 

As  a  result  of  these  efforts,  California  has  been  able  to 
extend  her  fruit  trade  to  the  remotest  parts  of  the  world. 
Liberal  shipments  of  canned  fruits  were  forwarded  to  the 
Orient  and  Europe  many  years  ago,  and  this  trade  has  not 
only  been  maintained,  but  has  been  largely  increased  as 
the  years  have  gone  by.  This  has  been  especially  true  of 
the  European  trade. 

The  shipments  of  canned  fruit  and  vegetables  to  those 
remote  sections  of  the  world  have  been  mainly  by  water. 
In  the  last  twenty  years  such  shipments  have  varied  from 
400,000  to  1,000,000  cases  per  annum.  In  addition,  the 
railways  have  taken  away  considerable  quantities  every 
year. 

The  same  conditions  have  been  observed  in  the  move- 
ment of  dried  fruits  of  all  kinds,  with  prunes  as  the  lead- 
ing feature.  While  a  few  years  ago  less  than  100,000 
pounds  dried  California  fruit  found  its  way  to  Europe 
direct  from  San  Francisco,  these  annual  shipments  now 
figure  in  the  millions  of  pounds. 

According  to  the  United  States  Census  returns  for  1910, 
California  ranked  first  among  all  the  States  in  the  produc- 
tion of  canned  asparagus,  apricots,  peaches  and  pears,  and 
of  dried  peaches  and  prunes,  and  sixth  in  the  production 
of  canned  tomatoes.  It  had  a  complete  monopoly  in  the 
production  of  dried  apricots  and  raisins.  In  1909  it  pro- 
duced nearly   86  per  cent   of  the   entire   American   prune 


I 


The  West  the  Best  and  California  the  Best  of  the  West.  125 

crop  and,  of  course,  all  of  the  raisin  crop  and  most  of  the 
grape  crop.  The  value  of  its  canned  fruits  and  vegetables 
in  1909  was  $32,914,800,  against  $6,421,900  in  1889.  There 
were  196  canning  and  preserving  plants  in  operation  in 
1909,  of  which  43  were  privately  owned,  34  were  operated 
by  firms,  and  119  by  corporations. 

The  State  Board  of  Development  reported  the  value  of 
the  soil  crops  of  California  in  1905  at  $147,950,000.  Two 
years  later  the  total  value  of  these  crops  was  given  at 
$181,052,100.  Four  years  later,  the  total  value  of  such 
products  was  further  raised  to  $266,221,400.  The  value  of 
the  cereal  crops  declined  from  $39,620,800  in  1905  to  $33,- 
073,400  in  1907,  but  advanced  in  1911  to  over  $52,000,000. 
The  hay  crop  increased  from  less  than  $32,000,000  in  1905  to 
over  $42,000,000  in  1911.  In  the  same  interval  other  field 
crops  increased  from  less  than  $18,000,000  to  over  $45,000,- 
000.  The  vineyard  crops  increased  in  the  same  period  from 
$10,848,000  to  $27,031,000.  The  value  of  the  orchard  crops 
more  than  doubled  in  the  same  time,  increasing  from 
$41,637,000  to  $86,299,000.  The  garden  truck  rose  from 
$6,198,000  to  $13,460,500  in  six  years. 

First  Beet  Sugar  State. 

California  claims  the  credit  of  introducing  a  new  indus- 
try into  the  United  States  in  the  raising  of  beets  to  be 
manufactured  into  beet  sugar.  This  Avas  in  the  sixties.  The 
first  factory  established  for  extracting  sugar  from  sugar 
beets  was  in  Alvarado,  Alameda  County.  The  pioneer  pro- 
moter of  that  enterprise  was  Mr.  Dyer.  The  business  soon 
passed  beyond  the  experimental  stage,  despite  the  doubts 
of  success  entertained  by  many  and  the  general  prejudice 
to  the  use  of  beet  sugar  which  had  to  be  met  and  overcome. 
The  fact  that  this  movement,  which  had  its  start  in  Alva- 
rado so  many  years  ago,  made  a  good  return  at  the  same 


126  The  West  the  Best  and  California  the  Best  of  the  West. 


place  in  1912,  is  pretty  good  evidence  that  the  making  of 
sugar  from  beets  is  a  permanent  industry  of  the  country, 
provided  it  continues  to  receive  proper  protection  from  for- 
eign sugars.  Hereafter  the  plant  at  Alvarado  will  be  oper- 
ated at  Meriden,  Sutter  County,  on  a  much  larger  scale. 

The  success  of  the  Alvarado  factory  soon  led  to  the 
establishment  of  other  factories  in  California  and  in  many 
of  the  other  States.  Several  of  these  beet  sugaries  have 
been  fostered  and  maintained  by  people  prominent  in  the 
production  of  cane  sugar  here  and  in  other  parts  of  the 
world.  At  first  some  of  these  men  entertained  very  strong 
prejudices  to  the  proposition  of  making  sugar  from  beets. 
However,  as  soon  as  the  experimental  stage  had  been  passed 
their  zeal  for  the  new  industry  was  something  remarkable. 

In  confirmation  of  this  change  of  heart,  it  is  only  neces- 
sary to  say  that  some  of  these  parties  erected  in  Monterey 
County,  California,  the  largest  beet  sugarie  in  the  world. 
It  is  the  general  belief  that  the  cane  sugar  operators  in  the 
United  States  are  largely  interested  in  the  production  of 
beet  sugar,  if  not  in  absolute  control. 

California  took  the  lead  in  this  industry  for  several 
years,  both  in  the  number  of  factories  in  operation  and  in 
the  gross  product.  Later  that  lead  was  taken  from  her  by 
Michigan  and  Colorado.  In  the  number  of  factories,  Mich- 
igan still  holds  first  place,  Colorado  second  and  California 
third.  But  in  gross  product,  California  has  been  at  the 
front,  or  very  near  the  front,  from  the  inception  of  the 
industry.  In  1910  it  stood  at  the  top  of  the  list  of  beet 
sugar  producers.  The  estimate  for  1912  puts  it  far  ahead 
of  any  other  State. 

There  were  61  beet  sugaries  in  operation  in  the  United 
States  in  1910,  with  a  gross  product  of  510,000  short  tons 
of  sugar.  The  eight  sugaries  in  California  in  that  year 
reported  a  product  of  139,890  tons,  against  139,215  tons  for 


The  West  the  Best  and  California  the  Best  of  the  West.  127 

the  17  sugaries  in  Michigan,  and  103,092  tons  for  the  13 
sugaries  in  Colorado. 

A  quarter  of  a  century  ago  California  was  credited  with 
a  product  of  2,140  short  tons.  Its  product  in  1912  has  been 
estimated  at  167,000  tons.  California  has  soils  in  which 
sugar  beets  make  the  best  returns  in  yield  and  saccharine. 
At  5  cents  per  pound,  the  product  for  1912  means  over 
$16,000,000. 

Hop  jDulture  in  California. 

-  California  has  always  held  high  rank  as  a  hop  producer. 
It  has  been  a  producer  of  hops  for  many  years,  and  the 
cultivation  of  the  plant  has  been  attended  with  a  variety 
of  experiences  from  the  financial  side.  In  some  years  the 
crop  has  realized  very  low  prices  and  in  other  years  very 
high  prices.  During  the  years  when  the  prices  were  on  the 
very  low  level,  much  of  the  area  given  to  hops  was  aban- 
doned, and  in  the  years  when  extreme  prices  were  paid, 
the  area  under  hop  culture  was  suddenly  greatly  enlarged. 
Hop  raisers  who  were  not  swayed  by  either  of  these  ex- 
tremes have  no  fault  to  find  with  the  average  annual  re- 
turns from  their  crops. 

In  the  last  quarter  of  a  century  the  hop  crop  in  Cali- 
fornia has  risen  from  less  than  30,000  bales  to  over  80,000 
bales.  The  smallest  return  in  this  interval  was  28,400  bales 
in  1890  and  the  largest  87,000  bales  in  1911. 

California  hops  have  always  found  an  appreciative  mar- 
ket in  the  Eastern  States  of  the  country  and  in  Europe. 
The  three  most  prominent  hop  States  of  the  country,  with 
the  exception  perhaps  of  New  York,  are  California,  Oregon 
and  Washington.  Within  the  past  two  years  the  picking 
of  hops  by  machinery  has  been  introduced  in  California, 
and  the  new  method  has  been  attended  with  satisfactory 
results.  Renewed  interest  in  the  cultivation  of  hops  in  this 
State   is   being   taken   in   the    behalf   of   Eastern    brewers. 


128  The  West  the  Best  and  California  the  Best  of  the  West. 

California   hops   took    first   prize    at    the    recent   Brewers' 
Exposition. 

The  foregoing  review  of  certain  soil  crops  of  California 
from  the  grass  roots  to  the  tree  tops  does  not  by  any  means 
cover  all  of  such  productions  in  the  State,  nor  has  there 
been  any  attempt  to  fully  exploit  those  that  have  been 
mentioned. 

To  enumerate  all  of  the  omitted  varieties  would  make 
a  long  story,  and  cover  ground  common  to  many  other 
States. 

Until  within  a  few  years,  not  much  attention  was  paid 
to  cotton  culture  in  California.  Within  the  past  three 
years  this  industry  has  been  brought  to  a  successful  stage 
in  Imperial  County,  in  the  southern  part  of  the  State.  Cot- 
ton has  not  only  been  produced  in  good  quantity  in  that 
section,  but  of  superior  quality,  showing  a  higher  grade 
than  that  grown  in  any  other  part  of  the  country.  Japan 
stands  ready  to  take  all  the  cotton  California  can  produce, 
thus  assuring  an  appreciative  market. 

Within  the  past  two  years  experiments  in  rice  culture 
in  the  northern  section  of  the  State  have  culminated  in  a 
pronounced  success,  and  an  increased  area  has  been  secured 
for  an  enlargement  of  the  industry. 

The  cultivation  of  dates  will  be  undertaken  this  year. 
There  are  indications  that  tobacco  culture  v/ill  also  be 
renewed  this  year.  Tobacco  was  successfully  cultivated  in 
the  State  some  years  ago,  but  some  fault  in  the  curing  of 
the  same  discouraged  producers.  The  next  attempt  in 
raising  tobacco  will  undoubtedly  be  successful. 

Exports  of  California  flour,  wheat,  barley  and  wine,  and 
the  packs  of  raisins  and  canned  goods  in  one  thousand 
quantities,  are  given  in  the  annexed  table : 


The  West  the  Best  and  California  the  Best  of  the  West.  129 


MOVEMENTS  IN  CALIFORNIA  PRODUCE 

Canned 

Years 

Flour 

Wheat 

Barley 

Wine 

Raisins 

Goods 

Barrels 

Centals 

Centals 

Gallons 

20-lb.  Bxs 

Cases 

1864 

436 

4,386 
217 

677 

1865 

66 

151 

1866 

322 

2,263 
4,663 
4,072 
5,011 
4,216 

285 

19 

1867 

522 

68 

35 

1868 

465 

80 

219 

43 

1869 

428 

314 

479 

82 

1870 

243 

157 

611 

1 

133 

1871 

232 

1,312 

12 

767 

2 

187 

1872 

247 

6,071 

176 

982 

4 

228 

1873 

470 

9,200 

273 

846 

6 

216 

1874 

529 

8,044 

652 

1,176 

9 

249 

1875 

497 

7,505 

210 

964 

11 

264 

1876 

508 

9,968 

500 

1,074 

19 

271 

1877 

429 

4,831 

92 

1,442 

32 

206 

1878 

489 

8,070 

463 

1,800 

48 

235 

1879 

519 

10,524 

863 

2,193 

65 

298 

1880 

562 

9,365 

1,075 

2,378 

75 

236 

1881 

783 

20,004 

553 

2,800 

90 

473 

1882 

966 

18,737 

5,54 

2,931 

115 

542 

1883 

1,240 

12,952 

228 

3,168 

125 

594 

1884 

1,194 

12,158 

749 

3,526 

175 

577 

1885 

1,297 

11,849 

223 

4,260 

475 

566 

1886 

1,123 

15,824 

1,014 

5,200 

703 

675 

1887 

799 

9,065 

495 

6,579 

800 

773 

1888 

826 

11,764 

1,752 

7,310 

1,250 

1,360 

1889 

1,130 

12,120 

993 

8,174 

1,634 

1,421 

1890 

1,190 

13,034 

332 

9,135 

1,900 

1,495 

1891 

1,237 

17,149 

928 

10,700 

2,600 

1,571 

1892 

1,115 

9,764 

1,387 

10,815 

2,850 

1,602 

1893 

887 

11,017 

3,009 

12,229 

4,250 

1,419 

1894 

989 

7,234 

1,149 

13,570 

5,150 

1,529 

1895 

950 

11,160 

1,632 

14,600 

4,658 

1,640 

1896 

1,175 

12,214 

3,873 

14,522 

3,413 

1,602 

1897 

873 

9,496 

3,250 

15,313 

4,685 

1,943 

1898 

811 

3,975 

781 

16,735 

4,032 

2,085 

1899 

971 

3,247 

3,136 

15,546 

3,578 

3,003 

1900 

1,175 

7,735 

2,698 

17,814 

4,717 

2,776 

1901 

1,187 

9,278 

4,415 

17,688 

3,713 

2,677 

1902 

1,208 

8,281 

4,076 

18,489 

5,400 

2,253 

1903 

837 

2,758 

3,913 

19,000 

6,000 

2,784 

1904 

811 

1,192 

2,205 

19,130 

3,750 

2,841 

1905 

585 

185 

1,818 

19,092 

4,375 

3,253 

1906 

412 

399 

2,644 

12,343 

4,750 

3,125 

1907 

371 

462 

2,454 

11,600 

7,000 

3,081 

1908 

251 

153 

2,595 

12,394 

5,000 

4,227 

1909 

233 

28 

2,041 

15,225 

7,000 

3,060 

1910 

195 

153 

4,640 

9,882 

6,250 

4,040 

1911 

321 

406 

4,255 

14,311 

6,500 

4,130 

1912 

416 

20 

2,807 

13,395 

6,500 

4,500 

130  The  West  the  Best  and  California  the  Best  of  the  West. 

The  Lumber  Industry. 

This  story  would  be  incomplete  if  it  did  not  contain  a 
reference  to  an  industry  that  is  as  old  as  the  world,  and 
indispensable  to  the  welfare  of  the  race.  It  can  hardly  be 
imagined  that  a  treeless  earth  could  be  habitable.  It  is 
evident  that  the  great  Creator  and  upholder  of  all  things 
took  that  view  of  it,  and  so  made  ample  provision  to  meet 
that  want,  which  is  universal  and  one  that  apparently  will 
never  cease  to  exist,  and  for  which  it  is  useless  to  look  for 
an  adequate  substitute. 

One  of  the  great  surface  assets  of  America  is  its  forests, 
which  human  labor  had  little  to  do  in  creating,  but  upon 
which  this  country  and  other  countries  have  been  making 
frequent  and  liberal  drafts  for  centuries.  It  is  impossible 
to  compute  the  value  this  source  of  wealth,  which  the  peo- 
ple had  so  little  to  do  in  creating,  has  been  to  the  country 
since  the  first  tree  was  utilized  as  a  contribution  to  the 
comfort  or  profit  of  the  race. 

The  uses  to  which  these  vast  forests  have  been  applied 
are  almost  numberless,  extending  from  the  character  used 
for  firewood  to  the  most  finished  forms  of  wood  products. 
The  pioneers  in  the  wooded  districts,  before  sawmills  were 
as  available  as  they  were  later,  constructed  their  habita- 
tions from  tree  logs.  In  the  erection  of  homes,  whether 
from  tree  boughs,  or  logs,  or  the  rough  or  surfaced  lumber, 
no  material  has  been  so  generally  used  as  that  furnished  by 
the  forests. 

The  western  half  of  the  land  area  of  the  United  States 
has  been  particularly  favored  in  the  matter  of  forests  of 
the  finest  woods.  Samples  of  these  woods  on  exhibition  at 
the  Lewis  and  Clark  Exposition  at  Portland  a  few  years 
ago  were  an  astonishment  and  a  revelation  to  the  thousands 
who  saw  them.     It  is  probable  that  a  similar  exhibit  will  be 


The  West  the  Best  and  California  the  Best  of  the  West.  131 

made  at  the  Panama-Pacific  International  Exposition  in  San 
Francisco  in  1915. 

California  claims  the  only  redwood  forest  in  the 
country,  and  liberal  shipments  of  her  redwood  lumber 
and  shingles,  and  even  her  redwood  stumps,  have  been 
made  to  various  parts  of  this  country  and  Europe.  The 
exterior  of  most  of  the  frame  dwellings  in  the  State  are 
of  redwood,  easily  worked,  of  moderate  price  and  very 
durable,  three  economic  values  not  always  combined. 

The  lumber  cut  in  California  for  the  last  eight  years, 
according  to  Government  reports,  has  averaged  over  one 
million  M.  feet  per  annum,  the  mill  value  of  the  same  being 
given  at  from  $15,000,000  to  $25,000,000  yearly.  At  least 
one-half  of  the  cut  has  been  redwood. 

The  estimated  wooded  area  of  California  exceeds  28,000,- 
000  acres,  and  at  the  low  estimate  of  $3  per  thousand  feet 
for  stumpage,  the  value  of  the  forest  exceeds  $500,000,000. 
Most  of  this  acreage  belongs  to  the  National  Forest  Re- 
serves. 

This  redwood  forest  is  indigenous  to  California,  and, 
with  the  exception  of  a  few  stunted  trees  in  Japan,  is  the 
only  forest  of  the  kind  in  the  world.  It  extends  along 
the  coast  about  240  miles,  and  is  from  10  to  20  miles  in 
width.  The  district  originally  contained  1,200,000  acres, 
and  is  estimated  that  about  80  per  cent,  of  that  acreage 
is  still  standing. 

The  western  slopes  of  the  Sierras  in  California  and  also 
in  Oregon  and  Arizona,  are  covered  with  various  varieties 
of  pine  and  cedar,  the  best  grades  being  found  on  the  high 
elevations. 

Very  little  lumber  is  shipped  from  San  Francisco,  most 
of  the  cargoes  for  foreign  ports  being  loaded  at  the  mill 
ports  on  the  northern  coast.    Last  year  the  shipments  from 


132  The  West  the  Best  and  California  the  Best  of  the  West. 

Eureka  were  over  44,000,000  feet  to  foreign  markets  and 
40,000,000  feet  to  San  Francisco. 

Lumber  shipments  from  Humboldt  Bay  from  1898  to 
1912,  a  period  of  fifteen  years,  were  4,166,219,376  feet,  val- 
ued at  over  $76,000,000.  This  quantity  represented  12,474 
cargoes,  large  and  small.  Over  one  thousand  of  these 
cargoes  were  cleared  for  various  destinations  last  year. 

Much  has  been  said  and  written  about  the  big  redwood 
trees  in  California.  Some  of  these  statements  may  have 
been  overdrawn,  but  the  size  of  these  stumps  are  certainly 
wonderful,  and  the  trees  are  inspiring. 

The  immense  forests  in  Oregon  and  Washington  have 
annually  added  many  millions  of  dollars  to  the  wealth  of 
those  States.  Oregon  stands  fourth  in  the  list  of  lumber 
producing  States.  It  still  claims  over  25,000,000  acres  in 
timber,  estimated  to  contain  over  496,000,000,000  feet,  val- 
ued at  $680,000,000. 

The  shipments  of  lumber  from  Oregon,  "Washington  and 
British  Columbia  to  foreign  and  domestic  ports  in  1912 
were  2,872,000,000  feet.  The  proportion  credited  to  British 
Columbia  in  that  total  was  nearly  53,000,000  feet. 

Of  the  923,000,000  feet  lumber  from  Grays  Harbor  in 
the  larger  total,  over  68,000,000  feet  was  sent  to  foreign 
markets,  while  of  that  sent  to  domestic  markets,  a  consid- 
erable proportion  was  forwarded  to  interior  points  by  rail. 

So  far,  nothing  has  been  said  about  the  product  and 
shipments  of  shingles  and  laths  from  Oregon  and  Washing- 
ton, but  both  are  important  adjuncts  of  the  business. 

Recently  a  large  order  for  timber  for  the  making  of 
pencils  was  filled  at  one  of  these  northern  ports. 

The  pine  and  fir  trees  on  this  coast  attain  enormous 
heights,  some  of  them  reaching  250  feet. 

The  forests  in  this  end  of  the  country  are  certainly  very 
attractive  and  very  valuable. 


The  West  the  Best  and  California  the  Best  of  the  West.  133 

OCEAN  COMMERCE  OF  SAN  FRANCISCO 


California's  Part  in  the  World's  Commerce. 

Thus  far  this  story  has  been  confined  to  some  of  the 
leading  productive  resources  of  California  from  1848  to 
1912.  There  has  been  no  attempt  to  cover  the  entire  list, 
nor  to  extensively  elaborate  those  that  have  been  named, 
nor  to  give  to  any  one  the  space  it  justly  deserves. 

It  is  now  in  order  to  mention  some  of  the  sources  and 
character  of  the  supplies  the  State  has  been  obliged  to 
obtain  from  other  sections  of  the  country,  as  well  as  the 
value  of  such  supplies  as  have  come  from  foreign  countries. 

San  Francisco  was  opened  to  the  commerce  of  the  world 
under  conditions  quite  dissimilar  to  the  opening  of  any 
other  American  port.  Surrounding  the  port  on  the  east, 
north  and  south  was  a  vast  area  of  uncultivated  land,  occu- 
pied here  and  there  by  a  few  hundred  people,  mostly 
Indians. 

Up  to  that  time  there  was  nothing  to  export  except 
small  lots  of  hides  and  tallow,  and  no  particular  need  for 
food  or  other  supplies  from  distant  ports,  and  hence  no  in- 
ducement to  send  cargo  vessels  to  the  port.  The  marine 
arrivals  were  few  and  far  between,  consisting  mainly  of 
naval  vessels  making  their  annual  tours  of  inspection  on 
Government  account,  and  whalers  that  called  to  get  a  fresh 
supply  of  drinking  water  before  proceeding  north  or  on 
the  way  from  the  north  to  the  Sandwich  Islands,  as  the 
Hawaiian  group  was  then  called. 

The  discovery  of  gold  in  California  in  January,  1848, 
wrought  a  magical  change  in  the  whole  situation  in  short 
order.  Events  of  that  character  did  not  occur  very  often, 
and  at  that  time   advices   of  even   such   important   events 


134  The  West  the  Best  and  California  the  Best  of  the  West. 

did  not  circulate  rapidly  in  the  absence  of  the  telegraph 
wire,  the  railway,  the  steamers  or  the  stage  coach. 

But  when  the  news  of  such  discovery  did  reach  any 
section  of  the  world  outside  of  the  State,  there  was  the 
wildest  kind  of  excitement  on  the  part  of  the  people  to 
get  to  the  scene.  They  came  in  great  haste  and  in  droves 
by  the  score,  by  the  hundreds  and  by  the  thousands,  by 
land  and  by  sea,  on  foot  and  on  horseback. 

These  hordes  of  immigrants  to  San  Francisco  brought 
little  with  them  in  the  way  of  food,  clothing  or  other  sup- 
plies. They  were  in  too  much  of  a  hurry  to  get  here  to 
make  much  preparation  for  the  means  of  subsistence  after 
their  arrival,  and  freight  facilities  when  they  started  out 
were  not  very  good. 

But  as  soon  as  the  stories  of  the  discovery  of  gold  were 
confirmed,  shippers  lost  no  time  in  sending  supplies.  Every 
available  vessel  on  the  Atlantic  seaboard  was  pressed  into 
the  service  to  carry  passengers  and  freight  to  San  Fran- 
cisco. Ships  in  foreign  ports  all  over  the  world  headed  for 
the  Pacific  Coast  laden  with  cargoes  and  passengers. 

At  first  the  supplies  from  domestic  Atlantic  ports  greatly 
exceeded  those  received  from  foreign  ports;  and  this  was 
the  condition  of  the  import  trade  for  many  years,  even 
after  the  opening  of  the  all-rail  route  between  the  Pacific 
and  the  Atlantic  coasts. 

No  value  was  kept  of  these  cargoes  from  domestic 
Atlantic  ports  brought  by  sail  vessels  via  Cape  Horn.  The 
value  of  the  domestic  goods  received  by  the  Panama  steam- 
ers in  1869  was  estimated  at  over  $36,000,000  in  currency. 
In  the  very  next  year,  when  the  overland  route  was  in  com- 
petition with  the  Panama  steamers,  the  value  of  the 
domestic  goods  received  by  the  steamers  was  less  than 
$11,000,000  in  currency. 

These  consignments  by  the  Panama  steamers  embraced 


The  West  the  Best  and  California  the  Best  of  the  West.  135 

a  large  variety  of  manufactures  of  the  more  costly  descrip- 
tions. 

The  weight  of  the  cargoes  by  the  sail  vessels  from 
domestic  Atlantic  ports  by  way  of  Cape  Horn  for  the  five 
years  ending  with  1870  was  nearly  1,000,000  tons,  including 
173,000  tons  coal  and  about  50,000  tons  railroad  iron.  The 
year  in  that  interval  showing  the  largest  traffic  was  1869, 
when  the  total  was  273,500  tons.  In  the  following  year, 
with  the  railroad  for  the  first  time  as  a  competitor,  it  was 
only  142,000  tons. 

In  some  of  the  later  years,  the  railways  across  the  con- 
tinent have  been  the  successful  competitors  for  many  of  the 
coarser  and  cheaper  varieties  of  freight  shipped  from  the 
Eastern  States  to  the  Coast. 

Values  of  the  free  and  dutiable  goods  received  at  San 
Francisco  from  foreign  sources  for  each  fiscal  year  since 
1848  are  given  in  a  tabular  statement  elsewhere,  together 
with  a  similar  statement  of  the  annual  duties  collected  on 
such  imports. 

At  least  fifty  difi'erent  markets  have  been  drawn  upon 
for  these  foreign  supplies  of  merchandise  and  produce. 

The  Government  made  no  classification  of  such  imports 
by  customs  districts  prior  to  1856.  The  destruction  by  fire 
of  the  custom  house  records  of  San  Francisco  in  1851  has 
made  it  impossible  to  obtain  official  reports  from  1848  to 
1851.  But  from  unofficial  sources  approximate  values  of 
the  yearly  imports  have  been  secured.  • 

The  list  of  Eastern  goods  received  at  San  Francisco 
from  1849  to  1869  embraced  boots  and  shoes,  candles, 
cement,  clothing,  cordage,  dry  goods,  iron,  mackerel,  nails, 
oils,  oysters,  paper,  powder,  sewing  machines,  soap,  spikes, 
starch,  tobacco  and  cigars,  turpentine,  whisky  and  other 
liquors,  agricultural  implements,  machinery,  castings,  shelf 


136  The  West  the  Best  and  California  the  Best  of  the  West. 

hardware  of  all  kinds,  drugs  and  cliemicals,  lumber,  car- 
riage materials,  furniture,  carpets,  household  goods,  etc. 

Many  of  these  manufactures  were  subsequently  pro- 
duced in  San  Francisco  and  other  parts  of  California  to  the 
full  extent  of  the  home  demand,  and  with  a  large  surplus 
for  export.  There  is  hardly  a  single  line  of  manufactures 
that  has  not  been  attempted  in  California,  and  many  have 
since  been  retained,  having  been  conducted  w^ith  success 
from  the  start. 

Expansion  of  Export  Trade. 

San  Francisco  enjoyed  a  smaller  export  trade  before  its 
import  trade  amounted  to  much.  In  1851  the  export  trade 
reached  an  estimated  value  of  $1,000,000,  three-quarters  of 
which  was  on  foreign  account. 

Five  years  later,  according  to  the  official  record,  the 
total  was  over  $4,000,000,  the  distribution  of  which  was 
relatively  the  same,  75  per  cent  to  foreign  ports  and  25 
per  cent  to  domestic  Atlantic  ports. 

Australia  was  the  best  foreign  customer  in  1856,  taking 
fully  25  per  cent  of  the  total,  leaving  only  50  per  cent  to  be 
absorbed  by  the  other  foreign  markets.  In  the  next  four 
years,  Australia  did  not  do  as  well,  but  in  1861  she  re- 
gained the  position  she  held  five  years  previously. 

Europe  figured  in  the  export  column  for  the  first  time  in 
1859,  with  a  value  of  $29,100.  France  took  a  value  of 
$7,000  in  the  same  year  for  the  first  time. 

In  1860  the  exports  exceeded  a  value  of  $8,500,000,  the 
largest  total  up  to  that  time.  This  total  included  over 
$1,900,000  to  domestic  Atlantic  ports.  British  Columbia 
was  the  best  foreign  market  in  that  year,  taking  $1,580,000. 
Great  Britain  took  a  value  of  nearly  $916,000  in  the  same 
year,  mostly  for  California  flour  and  wheat.  China  and 
Hongkong  took  a  value  of  $623,300  in  the  same  year,  the 


The  West  the  Best  and  California  the  Best  of  the  West.  137 

largest  total  in  six  years.    Mexico  took  a  value  of  $968,000 
in  the  same  year 

In  1865,  the  export  trade  amounted  to  $14,500,000,  the 
largest  up  to  that  year.  This  total  included  $6,159,100  to 
domestic  Atlantic  ports.  Mexico  was  the  best  foreign 
customer  in  that  year,  taking  $2,093,700.  China  ranked 
next,  with  a  value  of  $1,376,200.  In  this  review  China 
always  included  Hongkong,  the  terminus  of  the  steamer 
route  from  San  Francisco.  British  Columbia  took  a  value 
of  $1,243,100,  though  three  years  previously  it  had  taken 
$2,195,900.     Great  Britain  took  $1,176,200. 

In  1870,  the  exports  showed  a  value  of  nearly  $17,800,- 
000,  including  $4,300,000  to  domestic  Atlantic  ports.  That 
was  the  first  full  year  of  through  railway  competition  with 
the  water  route  between  the  Pacific  and  Atlantic  sides  of 
the  country. 

In  the  very  next  year,  owing  to  the  partial  failure  of 
the  grain  crops  in  the  State,  the  total  exports  showed  a 
value  of  only  $14,000,000. 

Between  1870  and  1875  the  value  of  the  export  trade 
was  nearly  doubled,  the  total  for  the  last-named  year  being 
about  $30,000,000. 

In  1880,  the  total  was  $34,804,900,  including  $5,362,000 
to  domestic  Atlantic  ports.  China  was  a  good  foreign  cus- 
tomer in  that  year,  with  a  credit  of  $3,386,500.  The 
Hawaiian  Islands  also  made  its  best  show  with  a  value  of 
$2,136,800,  Mexico  following  with  $1,808,100  and  the 
Society  Islands  with  $1,071,600.  The  shipments  to  Europe 
in  that  year  were  valued  at  $17,460,500,  including  $16,416,- 
900  for  flour  and  grain,  or  nearly  50  per  cent  of  the  total 
to  all  markets. 

In  1885  the  total  was  over  $36,000,000,  but  only 
$3,116,800  of  that  amount  was  forwarded  to  domestic 
Atlantic  ports.    European  countries  took  $20,587,400  in  that 


138  The  West  the  Best  and  California  the  Best  of  the  West. 

year,  China  took  $3,602,500  and  the  Hawaiian  Islands 
$2,428,700.  The  only  other  countries  taking  over  one  mil- 
lion in  that  year  were  Australia  and  Mexico. 

In  1890  there  was  an  export  value  of  $39,969,600  re- 
corded, though  in  three  of  the  previous  four  years  the 
yearly  total  had  exceeded  $40,000,000.  Eastern  Atlantic 
ports  took  over  $4,000,000  in  1890  and  European  countries 
took  $20,437,000.  The  next  largest  amount  of  $4,179,300 
went  to  the  Hawaiian  Islands.  China  took  over  $3,000,000, 
and  Australia,  Central  and  South  America  and  Mexico  took 
over  $1,000,000  in  each  case. 

The  year  1891  showed  a  remarkable  gain  over  any  one 
of  the  preceding  years,  reaching  a  total  of  nearly 
$54,000,000,  including  $31,924,600  to  European  countries. 
There  was  a  total  of  $5,372,200  to  domestic  Atlantic  ports 
and  $4,100,000  to  the  Hawaiian  Islands.  China  took 
$3,183,800;  Central  America,  $2,365,900;  Australia, 
$1,691,000;  Mexico,  $1,606,700;  and  South  America, 
$1,118,400. 

In  1892,  there  was  a  drop  of  $10,000,000  in  the  value 
of  San  Francisco's  export  trade,  a  further  drop  of 
$6,400,000  in  the  next  year,  and  a  still  further  drop 
of  $7,400,000  in  the  following  year.  The  decrease  in  those 
three  years  was  $27,470,000,  or  over  30  per  cent. 

California  was  not  wholly  to  blame  for  those  three  lean 
years  in  San  Francisco's  export  trade.  They  were  largely 
due  to  the"  bank  panic  of  1893,  a  trouble  that  had  been 
expected  for  some  time  as  the  result  of  the  inflated  cur- 
rency caused  by  the  compulsory  coinage  of  standard  silver 
dollars.  Had  the  advice  of  California's  soundest  financiers 
been  heeded  that  panic  would  not  have  occurred,  at  least 
not  in  that  way  and  at  that  time.  Cleveland  was  elected 
President  of  the  United  States  in  1892.  He  appreciated  the 
danger  from  the  silver  inflation,  and  lost  no  time  in  sus- 


The  West  the  Best  and  California  the  Best  of  the  West.  139 

pending  further  purchases  of  fine  silver  to  be  made  up  into 
dollars.  This  action,  however,  came  too  late.  The  disease 
had  gone  too  far  and  was  too  general  to  be  cured  in  that 
way.  It  was  necessary  to  readjust  business  along  new  lines, 
and  that  could  only  be  done  by  a  course  of  heroic  treat- 
ment. 

California  stood  up  under  that  treatment  much  better 
than  most  of  the  other  States.  She  had  never  forgotten 
that  a  dollar  meant  the  equal  of  one  hundred  cents  in  gold 
and  that  paper  dollars  or  silver  worth  anything  less  were 
not  dollars  in  her  estimation.  This  stand  for  sound  money, 
adopted  at  the  very  outset  and  steadily  maintained  from 
the  start,  will  forever  rank  as  one  of  the  brightest  and  most 
enduring  acts  in  the  history  of  California,  the  only  and 
thoroughly  golden  State  of  the  country. 

This  downward  movement  in  the  export  trade  of  San 
Francisco  was  checked  in  1895,  when  the  value  of  the 
exports  was  given  at  $33,375,100,  of  which  $3,892,000  was 
for  produce  sent  to  Eastern  States  by  the  water  route, 
Great  Britain  took  a  value  of  $14,758,000;  Hawaiian 
Islands,  $3,400,000;  China,  $2,327,000;  Japan,  $1,835,000; 
Central  America,  $3,191,000;  and  Australia,  $1,135,000. 

The  total  for  1900  was  $46,945,000.  This  includes 
$3,432,000  for  Eastern  ports  and  $10,631,000  for  the  Hawai- 
ian Islands.  The  islands  became  American  territory  in  1900 
and  for  the  last  five  and  one-half  months  of  that  year,  and 
because  of  that  fact,  the  Government  officers  made  no 
record  of  the  exports  to  the  islands.  This  omission  is  sup- 
plied in  the  above  total.  Great  Britain  took  $13,874,500  in 
the  same  year;  China,  $4,687,000;  Japan,  $2,743,800;  Aus- 
tralia $2,024,300;  Mexico,  $1,675,500;  Central  America, 
$1,623,500;  South  America,  $1,100,000;  and  British  Colum- 
bia, $1,023,200. 

In  1905  this  trade  exceeded  a  value  of  over  $63,000,000, 


140  The  West  the  Best  and  California  the  Best  of  the  West. 

the  largest  total  up  to  that  time.  This  includes  over 
$4,000,000  for  Eastern  States  and  $11,027,500  for  the 
Hawaiian  Islands,  leaving  nearly  $48,000,000  for  foreign 
countries.  The  shipments  to  Asia  that  year  were  unusually 
large,  amounting  to  $31,634,000.  Shipments  to  Europe  were 
cut  down  to  $4,553,800.  To  Australia  and  other  Pacific 
islands  the  total  was  $4,977,700,  and  to  British  Columbia 
and  other  North  American  markets  the  amount  was 
$5,752,400.  The  remainder  went  to  South  America  and 
other  sections. 

There  was  a  marked  reduction  in  this  trade  in  1906, 
incident  to  the  unparalleled  disaster  in  the  Spring  of  that 
year,  the  total  falling  under  $40,000,000. 

Since  then  there  has  been  a  steady  increase  from  year 
to  year.  In  1910  the  total  again  exceeded  $63,000,000,  and  a 
new  record  was  thus  made.  This  total  includes  $11,553,800 
to  domestic  Atlantic  ports  and  $14,913,800  to  the  Hawaiian 
Islands.  The  remainder  was  distributed  among  foreign 
markets.  There  was  a  value  of  $11,432,600  to  European 
countries,  of  which  $8,136,300  was  for  Great  Britain,  while 
most  of  the  remainder  was  distributed  in  Germany,  France 
and  Belgium.  There  was  a  value  of  $9,048,400  to  Japan 
and  $1,463,300  to  China.  Australia  took  $1,536,600;  New 
Zealand,  $654,700;  British  Columbia,  $1,697,500;  Philippine 
Islands,  $4,860,800;  while  Mexico,  Central  America  and 
South  America  each  took  over  $1,000,000. 

The  trade  for  1911  was  $20,000,000  larger  than  in  the 
previous  year,  the  total  approximating  $83,490,000.  This 
is  a  record  that  was  not  dreamed  as  possible  at  the 
beginning  of  that  year,  and  certainly  very  far  from  the 
expectations  of  the  most  optimistic  a  few  years  ago.  The 
value  of  the  goods  sent  to  domestic  Atlantic  ports  in  that 
year  was  $23,493,700,  the  largest  ever  reported,  and  more 
than  double  the  amount  for  the  previous  year,  which  was 


The  West  the  Best  and  California  the  Best  of  the  West.  141 

the  best  up  to  that  time.  The  total  to  the  Hawaiian  Islands 
in  the  same  year  was  $14,956,200,  a  slight  increase  over 
the  previous  year. 

Segregating  these  amounts  from  the  total  for  the  year, 
leaves  a  value  of  $45,039,800  for  the  trade  with  foreign 
ports,  an  unusually  large  amount.  Of  this  total,  $13,241,700 
was  distributed  among  various  European  countries,  largely 
in  the  way  of  canned  and  dried  fruits,  salmon  and  barley. 
China  and  Japan  took  a  value  of  $15,185,000,  in  which 
cotton  figured  to  a  large  extent,  together  with  California 
petroleum.  The  Philippine  Islands  took  a  value  of  $4,533,- 
000.  A  value  of  over  $5,000,000  was  distributed  in  Mexico, 
Central  and  South  America  and  Panama.  Australasia  took 
a  value  of  $2,909,000  and  British  Columbia  $2,350,000. 

It  was  thought  that  the  phenomenal  record  in  the  export 
trade  of  San  Francisco  in  1911  would  stand  for  some  time. 
The  crops  that  year  were  generally  good  and  the  prices 
received  for  the  surplus  sold  for  shipment  were  rather 
above  the  average  of  several  preceding  years.  It  was  a 
year  of  unusual  activity  in  the  ocean  transportation  lines, 
especially  those  taking  through  freight  to  the  Eastern 
States.  This  competition  undoubtedly  took  some  freight 
from  the  overland  railways. 

Lower  prices  for  some  products  in  1912  made  it  neces- 
sary to  increase  the  volume  of  the  ocean  export  trade  to 
even  duplicate  the  value  of  the  previous  year's  total.  It 
is  a  pleasure  to  note  that  this  has  been  done,  even  to  a 
much  larger  extent  than  was  expected  by  the  most  enthu- 
siastic well  wishers  of  San  Francisco. 

The    continued    competition    on    the    Panama    route    in 

1912  did  much  to  swell  the  volume  of  the  export  trade  of 

the  port  in  that  year.     In   addition,  the  fruit   and   other 

crops  furnished  an  increased  surplus  available  for  export. 

As   a   result,    the  .value    of   the    deep    water   shipments 


142  The  West  the  Best  and  California  the  Best  of  the  West. 

through  San  Francisco  to  all  ports  in  1912  amounted  to 
the  magnificent  sum  of  $91,670,000,  an  increase  of  more 
than  $8,000,000  over  the  previous  high  record. 

This  total  for  1912  includes  $18,583,600  to  domestic 
Atlantic  ports,  via  Mexico  and  the  Isthmus  of  Darien,  and 
$18,149,000  to  the  Hawaiian  Islands.  The  Government 
officials  do  not  include  these  totals,  because  they  come 
under  the  head  of  domestic  trade. 

Deducting  those  amounts,  there  is  a  total  of  $54,937,000 
for  the  foreign  trade  of  the  port  for  that  year,  which  is 
nearly  $10,000,000  larger  than  for  the  same  trade  in  the 
previous  year. 

Of  the  nearly  $55,000,000  shipped  to  foreign  ports  in 
1912,  Japan  and  China  took  about  $21,700,000,  of  which 
total  nearly  $13,000,000  was  for  cotton  raised  in  other 
States  and  sent  to  San  Francisco  for  reshipment.  This  was 
the  largest  total  for  shipments  of  that  kind  from  this  port 
to  the  Orient,  and  shows  an  increase  of  $4,268,400  over  the 
previous  year. 

The  shipments  to  Europe  in  the  same  year  were  valued 
at  $12,429,000  and  consisted  largely  of  canned  and  dried 
fruit,  barley  and  canned  salmon. 


The  West  the  Best  and  California  the  Best  of  the  West.  143 


IMPORTS,  DUTIES  AND  EXPORTS 

Following  is  a  statement  of  the  values  of  the  imports  into  and  the  ex- 
ports from  San  Francisco,  exclusive  of  treasure,  the  former  being  for  the 
fiscal  years  and  the  latter  for  the  calendar  years.  The  totals  are  for  one 
thousand  dollar  amounts: 


Fiscal 
Years 

Imports,  Forei 

gn 

Import 
Duties 

Exp 

orts 

1 

Foreign 

Domestic 

Free 

Dutiable 

Total 

Ports 

Ports 

1848 

$     100 

$     400 

$     500 

$     200 

$     375 

$     125 

1849 

120 

480 

600 

240 

488 

162 

1850 

180 

720 

900 

360 

638 

212 

1851 

250 

1,000 

1,250 

500 

750 

250 

1852 

250 

1,000 

1,250 

500 

1,125 

375 

1853 

350 

1,400 

1,750 

700 

1,500 

500 

1854 

500 

2,000 

2,500 

1,000 

1,875 

625 

1855 

700 

2,800 

3,500 

1,400 

3,143 

1,047 

1856 

1,243 

5,235 

6,478 

1,675 

3,157 

1,113 

1857 

719 

5,258 

5,977 

1,507 

2,212 

2,158 

1858 

731 

5,784 

6,515 

1,600 

3,486 

1,284 

1859 

1,517 

6,147 

7,664 

2,250 

4,115 

1,418 

1860 

1,250 

6,120 

7,370 

2,200 

6,598 

1,934 

1861 

1,462 

5,753 

7,215 

2,300 

8,185 

1,703 

1862 

1,272 

4,502 

5,774 

1,500 

7,113 

3,452 

1863 

352 

7,574 

7,926 

2,300 

8,635 

4,242 

1864 

650 

10,199 

10,849 

5,970 

8,206 

5,166 

1865 

733 

9,601 

10,334 

6,705 

8,395 

6,159 

1866 

941 

13,000 

13,941 

7,190 

12,106 

5,176 

1867 

950 

13,450 

14,450 

7,200 

15,737 

6,684 

1868 

320 

15,365 

15,685 

8,031 

14,246 

8,598 

1869 

152 

14,966 

15,118 

8,273 

15,234 

5,612 

1870 

535 

15,448 

15,983 

8,598 

13,481 

4,289 

1871 

2,699 

13,279 

15,978 

7,151 

10,138 

3,854 

1872 

4,102 

23,121 

27,222 

7,838 

18,135 

5,564 

1873 

13,617 

19,063 

32,680 

8,034 

27,629 

2,712 

1874 

11,663 

15,072 

26,735 

7,712 

23,736 

3,707 

1875 

9,571 

15,107 

24,678 

8,136 

25,970 

3,947 

1876 

14,402 

14,034 

28,436 

7,817 

28,033 

3,023 

1877 

17,138 

12,508 

29,646 

7,304 

24,200 

5,715 

1878 

15,922 

10,654 

26,576 

6,278 

28,855 

5,300 

1879 

18,032 

11,080 

29,112 

6,092 

31,464 

5,100 

1880 

25,686 

9,535 

35,221 

5.561 

29.442 

5,362 

144 


The  West  the  Best  and  California  the  Best  of  the  West. 


IMPORTS,  DUTIES  AND  EXPORTS 

Following  is  a  statement  of  the  values  of  the  imports  into  and  the  ex- 
ports from  San  Francisco,  exclusive  of  treasure,  the  former  being  for  the 
fiscal  years  and  the  latter  for  the  calendar  years.  The  totals  are  for  one 
thousand  dollar  amounts: 


Imports,  Foreign 

Exports 

Vl  <5Pa  1 

Import 
Duties 

Years 

Foreign 

Domestic 

Free 

Dutiable 

Total 

Ports 

Ports 

1881 

$26,391 

$11,552 

$37,943 

$    6,098 

$48,285 

$    5,426 

1882 

26,473 

14,529 

41,002 

8,276 

50,194 

5,558 

1883 

27,978 

17,724 

45,702 

10,094 

42,011 

3,756 

1884 

23,699 

12,159 

35,858 

6,751 

34,305 

2,940 

1885 

22,351 

12,689 

35,040 

6,539 

32,986 

3,117 

1886 

26,820 

10,322 

37,142 

5,764 

37,148 

3,054 

1887 

28,202 

12,506 

40,708 

6,474 

29,276 

6,689 

1888 

29,755 

16,928 

46,693 

8,712 

34,441 

6,384 

1889 

31,258 

17,168 

48,426 

9,410 

35,241 

6,010 

1890 

32,340 

16,411 

48,751 

8,171 

35.897 

4,072 

1891 

34,276 

16,667 

50,943 

7,649 

48,515 

5,372 

1892 

32,674 

14,372 

47,136 

7,660 

31,698 

8,549 

1893 

32,521 

12,770 

45,291 

7,295 

29,117 

4,736 

1894 

26,665 

11,451 

38,146 

5,686 

22,599 

3,815 

1895 

25,252 

11,018 

36,270 

5,328 

29,483 

3,892 

1896 

29,823 

11,577 

41,440 

5,401 

40,548 

3,008 

1897 

24,000 

10,376 

34,376 

5,198 

41,139 

3,960 

1898 

31,813 

11,010 

42,823 

5,271 

32,891 

3,216 

1899 

23,368 

12,379 

35,746 

6,475 

35,035 

3,276 

1900 

33,722 

14,147 

47,869 

6,909 

43,513 

3,432 

1901 

19,237 

15,925 

35,162 

7,346 

37,553 

15,270 

1902 

19,521 

15,582 

35,103 

7,412 

38,220 

15,455 

1903 

19,561 

16,893 

36,454 

7,712 

32.966 

16,614 

1904 

22,160 

15,382 

37,542 

7,305 

38,957 

14,187 

1905 

31,450 

15,225 

46,675 

7,299 

47,979 

15,369 

1906 

28.706 

15,728 

44,934 

7,283 

24,148 

15,471 

1907 

32,104 

21,990 

54,094 

9,878 

30,563 

14,837 

1908 

30,231 

18,020 

48,251 

7,322 

31,201 

15,660 

1909 

36,413 

13,585 

49,998 

6,406 

30,807 

23,545 

1910 

35,254 

14,097 

49,351 

6,396 

36,424 

26,938 

1911 

37,781 

16,104 

53,885 

6,973 

44,583 

38,907 

1912 

44,421 

14,812 

59,233 

6,842 

54,937 

36,733 

The  West  the  Best  and  California  the  Best  of  the  West.  145 

The  values  of  the  imports  have  been  taken  from  the 
Government  reports,  and  are  for  the  fiscal  year  ending 
June  30,  1848,  and  so  on  to  June  30,  1912,  while  the  values 
of  the  exports  are  for  the  calendar  years  beginning  with 
1848  and  ending  with  1912.  Since  June  14,  1900,  the 
Hawaiian  Islands  have  been  American  territory,  and  all 
the  imports  from  the  islands  since  July  1,  1900,  have  been 
eliminated  from  the  total  imports  at  San  Francisco,  as 
given  in  the  above  table. 

Beginning  with  the  calendar  year  1901,  all  exports  from 
San  Francisco  to  the  Hawaiian  Islands  have  been  classed 
as  domestic  exports,  and  placed  in  the  same  column  as  the 
water  shipments  to  Eastern  Atlantic  States,  whether  by 
Cape  Horn,  the  Straits  of  Magellan  or  via  Panama,  on 
the  Isthmus  of  Darien,  or  via  Salina  Cruz,  in  Mexico. 
Previous  to  1901  the  exports  to  the  Hawaiian  Islands  were 
included  with  those  sent  to  foreign  ports. 

It  is  well  to  bear  these  facts  in  mind  in  any  study  of 
the  import  and  export  trade  of  San  Francisco,  as  set  forth 
in  the  foregoing  statement.  The  Government  gives  import 
and  export  statements  of  trade  with  the  Hawaiian  Islands 
since  it  became  American  territory,  but  under  the  head  of 
non-contiguous  territory.  However,  these  statements  are 
not  by  customs  districts,  and  are  therefore  of  little  use  in 
this  connection.  For  the  last  five  fiscal  years  the  imports 
from  the  Hawaiian  Islands  have  averaged  $43,000,000  per 
annum,  of  which  at  least  $18,000,000  per  annum  should  be 
credited  to  San  Francisco. 


146  The  West  the  Best  and  California  the  Best  of  the  West. 


SOURCES  OF  SAN  FRANCISCO  IMPORTS 

Imports  by  decades  at  San  Francisco  from  1864  to  1912  will  be  found 
annexed  in  one  thousand  dollar  amounts: 


From 

1864-1873 

1874-1883 

1884-1893 

Great  Britain 

$   42,639 

25,588 

14,025 

11,510 

27,371 

8,738 

5,584 

9,820 

2,304 

3,140 

2,855 

6,450 

$   42,803 

16,159 

3,887 

25,457 

48,619 

23,691 

1,735 

38,464 

2,000 

8,910 

3,900 

7,284 

$  42,705 
29,851 

3,338 
33,268 
60,079 
90,879 

7,994 
104,174 

2,562 
12,801 
15,216 
22,868 

Other  Europe          

South  America 

Central  America 

China 

Japan  

Philippine  Islands 

Hawaiian  Islands 

Other  Pacific  Islands 

Australasia     

British  Columbia 

Other  Countries 

Totals 

$160,024 

$222,909 

$425,735 

From 

1894-1903 

1904-1912 

1864-1912 

Great  Britain 

$   25,799 
33,590 

7,780 
32,304 
65,200 
94,698 

2,979 
102,278 

3,468 

7,949 
20,612 
25,707 

$    18,501 

51,415 

16,886 

32,837 

66,351 

191,377 

13,787 

131,000 

4,933 

7,958 

11,606 

40,756 

$    172,447 

156,603 

45,916 

135,376 

267  620 

Other  Europe 

South  America 

Central  America 

China 

Japan  

409,383 
32,079 

385,736 
15,267 
40,758 
54,189 

103,065 

Philippine  Islands 

Hawaiian  Islands 

Other  Pacific  Islands 

Australasia 

British  Columbia 

Other  Countries 

Totals 

$422,364 

$587,407 

$1,818,439 

The  foregoing  statement  covers  the  last  49  years  of  San 
Francisco's  import  trade.  The  second  of  these  decades 
shows  an  increase  of  nearly  40  per  cent  over  the  first 
decade,  while  the  third  decade  shows  an  increase  of  91  per 
cent  over  the  second,  and  162  per  cent  over  the  first.  One 
reason  why  the  imports  for  the  fonrth   decade   were  less 


The  West  the  Best  and  California  the  Best  of  the  West.  147 

than  for  the  third  decade  was  due  to  the  country-wide 
bank  panic  of  1893,  from  the  effects  of  which  general  busi- 
ness did  not  recover  for  at  least  four  years.  The  imports 
for  the  last  nine  years  of  the  above  period  show  an  in- 
crease of  nearly  38  per  cent  over  the  previous  ten  years, 
and  is  the  best  record  yet  made. 

Destinations  of  Produce  Exports. 

San  Francisco  has  been  exporting  produce  and  mer- 
chandise to  various  parts  of  the  world  for  sixty-five  years. 
A  score  or  more  of  countries  have  been  the  recipients  of 
this  trade.  The  value  of  this  trade  by  the  deep  water 
routes  during  that  interval  exceeds  two  billion  dollars. 
To  bring  the  details  of  this  trade  within  the  grasp  of  the 
mind  of  the  reader,  the  following  condensed  form  has  been 
adopted,  showing  the  volume  of  the  business  by  decades 
to  the  principal  sections  of  the  world,  as  follows,  in  one 
thousand  dollar  amounts: 


Decades 

Europe 

Orient 

West 

Coast 

Pacific 
Islands 

Other 
Foreign 

Eastern 

States 

1848-57 
1858-67 
1868-77 
1878-87 
1888-97 
1898-07 
1908-12 

$  20,074 

126,345 

232,266 

192,967 

98,573 

54,254 

$     1,504 
11,473 
26,874 
46,187 
44,357 
140,302 
71,141 

$    6,521 
20,963 
24,145 
29,949 
43,109 
44,446 
23,798 

$    6,517 
13,348 
14,433 
42,236 
58,346 
148,668 
108,989 

$       718 
16,199 

9,004 
13,3.33 

9.868 
17,057 
12,438 

$  6,569 
37,739 
47,020 
46,304 
49,335 
40,360 
69,118 

Totals. .  . 

$724,479 

$341,838 

$192,931 

$392,537 

$78,617 

$296,445 

The  last  line  in  the  above  table  is  for  five  years  only, 
whereas  the  previous  lines  are  for  ten-year  periods.  In 
these  sixty-five  years  the  value  of  the  merchandise  and 
produce  shipped  from  San  Francisco  to  the  above  destina- 
tions is  $2,026,847,000. 


148  The  West  the  Best  and  California  the  Best  of  the  West. 

An  explanation  of  the  foregoing  grouping  of  the  desti- 
nations to  which  exports  from  San  Francisco  have  been 
sent  is  in  order.  The  column  for  Europe  consists  of  a 
score  of  European  countries,  the  principal  ones  in  the 
order  of  service  being  England,  Germany,  France,  Holland, 
Denmark,  Sweden  and  Italy.  Under  Orient  are  included 
Japan,  Korea,  Asiatic  Russia,  China,  Hongkong,  India, 
Siam  and  the  Straits.  The  West  Coast  embraces  Mexico, 
Central  America,  South  America  and  the  Isthmus  of  Da- 
rien.  Grouped  under  the  head  of  Pacific  Islands  are  the 
Philippines,  Australasia,  Hawaii,  Society,  Marquesas,  and 
other  South  Sea  islands.  Classed  as  ''other  foreign"  are 
Africa,  British  Columbia,  West  Indies  and  several  other 
minor  markets.  Shipments  by  water  to  Eastern  States 
includes  cities  on  the  Atlantic  seaboard  and  throughout 
the  interior  as  far  west  as  Chicago,  and  contiguous  cities 
in  adjacent  States. 

In  the  tables  of  imports  under  the  head  of  "other 
countries,"  are  included  British  India,  Dutch  East  Indies, 
Straits  Settlement,  Cuba,  Mexico,  and  several  other  sources 
of  lesser  importance.  The  imports  from  the  Indies  and 
Straits  Settlements  and  Mexico  constitute  the  major  por- 
tion of  the  totals  classed  under  the  head  of  other  countries. 

The  imports  from  1848  to  1863,  both  years  inclusive, 
the  sources  of  which  could  not  be  definitely  traced,  were 
valued  at  $67,169,000,  and,  added  to  the  amount  for  which 
sources  are  named  from  1864  to  1912,  makes  a  grand  total 
of  $1,885,608,000  for  the  imports  into  San  Francisco  from 
1848  to  1912,  exclusive  of  domestic  goods  from  the  Atlantic 
States  by  water  and  railroads. 


The  West  the  Best  and  California  the  Best  of  the  West.  149 


GOLD  AND  SILVER  COIN  AND  BULLION  MOVEMENTS 


Large  Exports  of  Precious  Metals. 

San  Francisco  holds  a  very  high  position  in  the  move- 
ment of  gold  and  silver  metals,  both  coined  and  uncoined. 
No  American  port,  in  proportion  to  population,  is  believed 
to  have  handled  an  equal  value  in  the  same  number  of  years. 
Few  persons  have  any  idea  of  the  magnitude  of  this  move- 
ment. A  considerable  proportion,  of  course,  has  been  of 
an  interstate  character,  and  no  cognizance  of  such  move- 
ment is  to  be  found  in  the  Government  reports.  These 
only  cover  such  movements  between  the  United  States  and 
foreign  countries. 

Prior  to  1856,  even  in  the  foreign  trade,  there  was  no 
record  of  such  movements  by  customs  districts,  and  hence 
resort  has  been  necessary  to  other  sources  for  such  informa- 
tion as  to  the  movement  between  this  port  and  foreign 
ports,  and  also  between  this  port  and  other  domestic  ports, 
both  on  the  Atlantic  and  Pacific  Coast.  The  writer  has 
been  at  some  trouble  to  secure  such  information  in  order 
that  San  Francisco  may  have  due  credit  for  what  it  has 
done  in  this  matter. 

As  California  has  produced  a  larger  amount  of  gold 
than  any  other  State,  and  as  nearly  all  the  gold  and  silver 
produced  in  the  country  has  come  from  the  States  west  of 
the  Rocky  Mountains,  the  position  of  San  Francisco  in  the 
handling  of  these  metals  has  been  unique.  The  United 
States  Mint  in  the  city  since  1854  and  the  large  private 
refineries  have  been  important  factors  in  attracting  these 
metals  to  San  Francisco  from  adjoining  States  and  Terri- 
tories. 

Upon  personal  application  to  the  Treasury  Department 


150  The  West  the  Best  and  California  the  Best  of  the  West. 

at  Washington,  a  special  report  was  prepared  for  the 
writer,  showing  the  movement  of  gold  and  silver  between 
foreign  countries  and  San  Francisco  by  fiscal  years,  com- 
mencing with  July  1,  1855. 

Unfortunately  it  was  found  impossible  to  separate  the 
gold  from  the  silver  in  the  first  eight  of  those  fiscal  years, 
either  in  the  coin  or  bullion  form,  as  to  exports.  The  total 
exports  from  San  Francisco  to  foreign  countries  for  that 
interval  were  $3,362,870  in  coin  and  $48,722,798  in  bullion. 
As  there  was  little  silver  produced  on  this  Coast  prior  to 
1860,  most  of  the  above  $52,085,700  must  have  been  gold, 
and  all  of  it  of  domestic  production. 

The  Government  did  not  incorporate  foreign  specie  in 
its  exports  from  San  Francisco  until  about  1884.  The 
imports  and  exports  of  specie  from  San  Francisco,  as 
taken  from  Government  reports  by  fiscal  years,  from  July 
1,  1855,  were  as  follows,  in  one  thousand  dollar  amounts: 


Decades 

Imports 

Exports 

Gold 

Silver 

Total 

Gold 

Silver 

Total 

1856-65 
1866-75 
1876-85 
1886-95 
1896-05 
1906-12 

$  15,758 
27,997 
25,395 
48,565 
183,822 
41,748 

$38,204 
77,340 
46,106 
29,171 
29,459 
17,703 

$  53,962 

105,337 

71,501 

77,736 

213,281 
59,451 

$100,552 
60,772 
7,639 
11,026 
17,775 
41,7.59 

$    2,044 
49,353 
90,763 
132,700 
77,041 
50.626 

$102,596 

110,125 

98,402 

143,726 

94,816 

92,385 

Totals. .  . 

$343,285 

$237,983 

$581,268 

$239,523 

$402,527 

$642,050 

These  totals,  both  of  imports  and  exports,  are  incom- 
plete in  these  two  particulars,  namely :  The  imports  do 
not  include  the  receipts  of  foreign  coin  and  bullion  by  rail- 
ways into  San  Francisco,  nor  the  exports  of  foreign  coin 
and  bullion  from  San  Francisco.  Mexico  and  Canada  have 
^ent  large  amounts  of  specie  into  San  Francisco  ever  since 


The  West  the  Best  and  California  the  Best  of  the  West.  151 

the  establishment  of  the  railway  service,  making  such  ship- 
ments in  that  way  possible.  As  there  has  been  no  tax 
imposed  on  specie  from  foreign  sources,  consignments  by 
the  railways  have  not  passed  through  customs  channels. 
The  writer  kept  a  record  of  these  imports  by  railway  from 
Mexico  for  many  years,  and  the  annual  receipts  were  from 
$5,000,000  to  $10,000,000.  It  was  no  part  of  the  Govern- 
ment officers  to  take  cognizance  of  such  imports  by  rail. 
If  these  were  added  to  those  received  by  the  w^ater  routes 
and  entered  at  the  custom  house,  the  total  in  the  fore- 
going table  would  be  very  much  larger. 

The  omission  of  foreign  specie  in  the  exports  from  San 
Francisco  in  the  Government  reports  until  about  1884  is 
unfortunate,  as  the  amount  of  such  foreign  specie  shipped 
from  the  port  up  to  that  time  was  considerable.  From 
1854  to  1866,  both  years  inclusive,  the  specie  shipments 
from  this  port  to  Hongkong  and  China  were  $46,227,000, 
mostly  in  Mexican  dollars.  From  1867  to  1874  the  treasure 
shipments  from  San  Francisco  to  China  were  $52,505,000, 
and  to  Japan  $18,600,000.  The  proportion  of  foreign  specie 
in  these  totals  is  not  known,  but  it  was  considerable.  From 
1875  to  1884  the  shipments  of  Mexican  dollars  to  China 
were  $30,800,000. 

The  facts  given  in  the  previous  two  paragraphs  will 
prepare  the  reader  for  the  more  extended  and  the  more 
complete  statement  of  the  treasure  movements  of  San  Fran- 
cisco that  has  been  specially  prepared  as  a  part  of  this 
storj'^,  showing  the  shipments  by  calendar  years,  not  only 
to  foreign  ports,  but  to  other  points  in  the  United  States 
outside  of  the  boundaries  of  California. 

Prior  to  the  opening  of  the  first  through  railway  from 
the  Pacific  seaboard  to  the  Atlantic  seaboard  in  May,  1869, 
nearly  all  the  gold  and  silver  sent  out  of  the  State  took 


152  The  West  the  Best  and  California  the  Best  of  the  West. 

the  water  routes,  and  was  checked  up  at  the  custom  house 
or  at  the  shipping  offices. 

Railway  reports  of  treasure  shipments  from  San  Fran- 
cisco to  New  York  and  other  Eastern  cities  were  received 
weekly  from  1869  to  1875,  and  afterwards  monthly  until 
1902,  when  that  courtesy  was  withdrawn.  Such  shipments, 
it  is  believed,  have  since  been  continued,  but  in  much 
smaller  annual  amounts,  as  large  remitters  have  availed 
themselves  more  frequently  of  the  facilities  of  the  sub- 
treasury  for  such  purposes. 

In  the  last  eight  months  of  1869  these  railway  ship- 
ments were  $6,646,200.  In  1870,  the  first  full  year  of  the 
operation  of  the  railway,  the  shipments  of  treasure  to  the 
East  by  that  route  were  $14,355,800,  of  which  $5,528,000 
was  in  coin.  This  is  what  the  railway  diverted  from  the 
Panama  steamers.  In  1871  these  railway  shipments  were 
only  $8,562,800,  of  which  $5,919,500  was  in  fine  silver, 
$2,532,000  in  fine  gold,  and  $111,200  in  gold  coin.  The 
reason  assigned  for  this  falling  off  from  the  previous  year 
was  the  more  general  use  of  the  mails. 


The  West  the  Best  and  California  the  Best  of  the  West. 


153 


DESTINATIONS   OF   TREASURE    SHIPMENTS 

Following  is  a  complete  statement  of  the  shipments  of  gold  and  silver 
coin  and  biillion  from  San  Francisco,  exclusive  of  the  amounts  sent  through 
the  mails  and  of  the  amounts  sent  by  rail  since  1902,  in  one  thousand 
dollar  amounts: 


Years 

Dom. 

Atlantic 

Europe 

Orient 

West 
Coast 

Else- 
where 

Total 

1848 

%    2,000 

3,000 

24,000 

$  2,000 

4,921 

27,676 

1849 

'$   1,000 
2,000 

$  921 

1850 

$  676 

1,000 

1851 

34,000 
40,000 

4,000 

583 

4,000 

42,583 

1852 

4,000 

586 

2,000 

46,586 

1853 

-M^  ^_^  •  Kj  \j  \j 

50,000 

4,796 

535 

2,000 

57,331 

1854 

46,533 

3,781 

966 

205 

"'  $  561 

52,046 

1855 

38,731 

5,182 

890 

231 

128 

45,162 

1856 

39,895 

8,666 

1,309 

253 

574 

50,697 

1857 

35,532 

9,348 

2,993 

411 

693 

48,977 

1858 

35,891 

9,266 

1,916 

299 

176 

47,548 

1859 

40,146 

3,911 

3,101 

280 

202 

47,640 

1860 

35,719 

2,673 

3,375 

301 

258 

42,326 

1861 

32,628 

4,002 

3,541 

350 

96 

40,677 

1862 

26,194 

12,950 

2,771 

450 

296 

42,661 

1863 

10,389 

28,467 

4,306 

2,729 

180 

46,071 

1864 

12,316 

34,436 

7,925 

599 

431 

55,707 

1865 

20,245 

16,177 

7,078 

669 

257 

44,426 

1866 

29,341 

7,377 

6,633 

438 

577 

44,366 

1867 

22,118 

7,419 

9,673 

1,258 

204 

40,672 

1868 

26,716 

1,706 

6,970 

742 

224 

36,358 

1869 

12,482 

13,749 

8,955 

2,007  , 

94 

37,287 

1870 

13,523 

9,901 

6,881 

2,652 

25 

32,982 

1871 

8,057 

3,185 

4,182 

1,774 

56 

17,254 

1872 

4,056 

2,262 

17,690 

5,106 

217 

29,331 

1873 

14,598 

667 

8,467 

874 

35 

24,641 

1874 

20,766 

263 

8,281 

838 

23 

30,171 

1875 

34,477 

171 

7,719 

351 

204 

42,922 

1876 

37,382 

266 

11,907 

138 

90 

49,783 

1877 

38,619 

209 

18,246 

527 

124 

57,725 

1878 

21,697 

232 

11,867 

306 

190 

34,292 

1879 

7,441 

700 

9,169 

207 

170 

17,687 

1880 

6,345 

489 

5,069 

264 

785 

12,952 

1881 

6,244 

81 

5,144 

257 

148 

11,874 

154  The  West  the  Best  and  California  the  Best  of  the  West. 

DESTINATIONS   OF   TREASURE    SHIPMENTS— Continued 


Years 

Dom. 

Atlantic 

Europe 

Orient 

West 
Coast 

Else- 
where 

Total 

1882 

$  4,234 

1,570 

1,783 

1,426 

2,366 

3,153 

6,039 

5,717 

3,517 

3,698 

14,605 

11,610 

13,235 

7,616 

13.170 

26,885 

49,918 

10,179 

7,179 

3,356 

$  5,999 

10,303 

14,551 

18,161 

17,250 

14,727 

15,985 

18,892 

7,764 

7.946 

13,741 

11,960 

12,825 

18,033 

14,101 

17,565 

7,673 

7,763 

14,741 

11,119 

14,473 

4,606 

14,842 

15,944 

8,756 

3,924 

5,852 

36,035 

9,338 

11,466 

15,837 

$  82 

38 

16 

43 

30 

152 

221 

284 

75 

96 

170 

125 

504 

286 

165 

90 

140 

50 

61 

101 

106 

64 

215 

8 

14 

156 

5 

267 

$  68 
387 

1,190 
601 
930 
534 
304 

1,089 
828 

1,032 
609 
927 
615 
471 

1,113 

1,049 
811 

2,922 

347 

12 

171 

1,642 

92 

389 

185 

302 

83 

33 

75 

121 

96 

$10,383 
12,298 
17,540 
20  231 

1883 

1884 

1885 

1886 

20,576 
18,566 
22,549 

25,982 
12,184 

12  772 

1887 

1888 

1889 

1890 

1891 

1892 

29,125 
24,622 
27,179 
26,406 
28  549 

1893 

1894 

1895 

1896 

1897 

45,589 

58,542 

20,914 

22,328 

14,588 

14,750 

6,312 

15,149 

16,341 

8,955 

4,382 

5,940 

36,335 

9,413 

11,789 

15  936 

1898 

1899 

1900 

1901 

1902 

1903 

1904 

1905 

1906 

1907 

1908 

1909 

1910 

1911 

202 
3 

1912 

Totals. .  . 

$1,022,340 

$203,394 

$591,576 

$38,206   $26,046 

$1,881,562 

The  large  amounts  shipped  from  1850  to  1860  were  due 
to  the  liberal  production  of  gold  in  the  State  during  that 
decade.  The  heavy  movement  in  1864  was  due  to  the 
partial  failure  of  the  crops  for  want  of  sufficient  rain  and 
to  the  high  price  of  gold  in  New  York,  which  culminated 
at  264  in  July  of  that  year,  equal  to  a  premium  of  164 
per  cent  as  represented  in  paper  money. 


The  West  the  Best  and  California  the  Best  of  the  West.  155 

The  next  very  heavy  movement  occurred  in  1877,  and 
that  was  also  due  to  light  crops  for  the  same  reason  and 
to  the  hard  times  incident  to  the  agitation  over  the  influx 
of  Chinese,  which  led  to  riots  and  the  formation  of  a  vigi- 
lance committee. 

The  last  year  that  these  exports  exceeded  $55,000,000 
was  in  1898,  when  the  total  was  $58,542,000.  That  was  a 
record  total  in  that  line.  It  was  largely  due  to  the  Spanish- 
American  war,  which  led  to  an  unusually  heavy  demand 
for  gold  in  New  York,  and  of  the  total  amount  of  specie 
shipped  in  that  year  $49,900,000  went  to  that  city,  and 
nearly  the  entire  amount  was  in  gold  coin. 

Gold  From  Australia  and  Japan. 

The  heavy  shipments  of  gold  in  1898  caused  no  incon- 
venience to  San  Francisco,  for  California  gold  was  not 
involved  in  that  movement  to  any  extent.  It  was  gold 
from  Australia  that  filled  the  urgent  need.  These  gold 
shipments  from  Australia  to  San  Francisco  began  to  arrive 
in  August,  1897,  and  for  every  month  thereafter  until  the 
end  of  December,  1898,  the  golden  stream  was  continuous, 
aggregating  $38,376,000  for  those  nineteen  consecutive 
months.  This  was  followed  in  1899  by  a  further  importa- 
tion of  $12,454,000  in  the  same  metal  and  from  the  same 
source. 

In  the  calendar  year  of  1901  Australia  sent  to  San  Fran- 
cisco $12,458,000  in  gold  and  Japan  $4,040,000.  In  the  fol- 
lowing year  there  was  $7,791,300  in  gold  from  Australia. 

The  imports  of  specie  in  the  calendar  year  of  1904 
were  unusually  heavy,  amounting  to  over  $45,000,000,  includ- 
ing $36,579,200  in  Japanese  yen  and  $5,650,000  from 
Australia,  most  of  the  remainder  coming  from  Mexico. 

The  imports  of  gold  at  San  Francisco  have  mainly  been 
from  Australia  and  Japan.      These  were  unusually  heavy 


156  The  West  the  Best  and  California  the  Best  of  the  West. 

from  1897  to  1904.  During  those  eight  years  Australia 
sent  to  San  Francisco  $100,614,700  and  Japan  $49,754,100, 
or  a  combined  total  of  over  $150,000,000.  Since  1904  about 
$15,000,000  more  has  been  received  from  the  same  sources. 

This  money  was  sent  to  San  Francisco,  not  to  settle 
any  indebtedness  due  to  California  from  those  countries, 
but  rather  because  it  was  more  advantageous  to  settle 
obligations  incurred  in  Europe  or  in  the  eastern  sections 
of  the  United  States  than  to  send  the  gold  direct. 

The  price  of  exchange  is  the  governing  factor  in  inter- 
national settlements,  in  connection  with  cost  of  freight  and 
insurance  in  the  transportation  of  the  gold. 

It  is  a  source  of  local  pride  to  know  that  San  Fran- 
cisco has  figured  so  largely  in  the  settlement  of  the  world's 
business,  and  it  does  not  seem  to  be  a  very  hazardous 
statement  to  predict  that  San  Francisco  will  soon  occupy 
a  still  more  prominent  position  in  the  exchange  market. 

California  has  not  only  occupied  a  unique  position  in 
the  production  of  gold,  but  an  equally  unique  position  in 
its  use  and  distribution  to  other  parts  of  the  country  and 
of  the  world. 

Its  monetary  standard  from  the  very  start  was  gold, 
and  this  was  incorporated  in  the  organic  act.  It  has 
invariably  adhered  to  that  standard.  In  1861,  at  the 
opening  of  the  Civil  War,  when  metallic  and  paper 
money  parted  company  in  nearly  all  the  other  sec- 
tions of  the  country,  great  pressure  was  used  to  induce 
California  to  follow  the  example  of  other  States,  and  make 
paper  money  the  standard  for  commercial  settlements. 
Fortunately  that  effort  failed,  and  in  1879  specie  payments 
were  resumed  throughout  the  United  States. 

As  soon  as  the  way  was  opened  for  the  free  and  safe 
shipment  of  gold  to  the  other  side  of  the  country  and  to 
Europe,   California  embraced  the  opportunity,   and  nearly 


The  West  the  Best  and  California  the  Best  of  the  West.  157 

every  steamer  that  left  San  Francisco  for  Panama  took 
large  consignments  as  part  of  cargo.  In  fact,  in  the  very 
early  years  of  this  movement  there  was  little  else  to  ship. 

For  many  years  these  gold  shipments  were  regularly 
maintained.  In  1869,  when  through  railway  service  was 
inaugurated,  the  shippers  of  gold  and  silver  transferred 
their  business  to  the  railroad,  and  the  record  of  shipments 
by  that  route  was  given  to  the  public  until  1902,  when  the 
officials  discontinued  the  courtesy. 

Panama  Steamers  as  Carriers  of  Gold. 

The  first  steamer  to  arrive  at  San  Francisco  in  the 
service  between  the  Atlantic  and  Pacific  by  way  of  the 
Isthmus  reached  her  destination  on  February  28,  1849,  and 
the  second  one  on  April  1.  Others  followed  at  monthly 
intervals  during  the  same  year.  Later  on  the  service  was 
made   semi-monthly   and   afterwards  tri-monthly. 

The  amount  of  treasure  by  the  first  steamer  to  leave  for 
Panama  is  not  remembered.  However,  the  consignment  by 
the  steamer  Unicorn,  which  left  on  December  1,  1849,  was 
$780,000.  Many  who  ^vitnessed  her  departure  said  she 
carried  $1,000,000,  including  the  amount  taken  by  the  pas- 
sengers. 

It  is  a  matter  of  record  in  the  possession  of  the  writer 
that  many  of  these  steamers  not  only  carried  $1,000,000  in 
gold,  but  over  $2,000,000. 

The  steamer  Sonora,  which  left  for  Panama  on  May  20, 
1857,  carried  $2,284,864.  There  were  over  thirty  shippers 
represented  in  that  total.  Drexel,  Sather  &  Church  headed 
the  list  with  a  shipment  of  $344,000.  Other  leading  ship- 
pers were  Wells,  Fargo  &  Co.,  $336,200;  B.  Davidson, 
$274,500 ;  Alsop  &  Co.,  $200,000 ;  Tallant  &  Wilde,  $200,000 ; 
Parrott  &  Co.,  $187,100;  James  Patrick  &  Co.,  $90,000; 
Levi   Strauss,   $75,200;   Wm.    T.   Coleman   &   Co.,   $74,000; 


158  The  West  the  Best  and  California  the  Best  of  the  West. 

D.  0.  Mills.  $62,000;  E.  Kelly  &  Co.,  $59,000;  H.  W. 
Sehwabe  &  Co.,  $54,000;  S.  T.  Meyer  &  Co..  $52,300;  J.  B. 
Weir,  $33,000;  Freeman  &  Co.,  $32,000,  and  D.  L.  Ross  & 
Co.,  $30,300.     The  remainder  was  in  smaller  amounts. 

In  1858  the  24  steamers  for  Panama  took  $45,814,000 
in  treasure,  each  one  taking  over  $1,500,000,  and  six  of 
them   carrying   over  $2,000,000   each. 

Seven  of  the  steamers  that  left  in  1859  carried  over 
$2,000,000  each,  one  of  them  taking  $2,401,300,  while  the 
total  amount  for  the  24  steamers  that  year  was  $44,200,000. 

In  1860  there  were  34  steamers  for  Panama,  and  nearly 
all  of  them  carried  over  $1,000,000  each,  while  the  total 
for  all  was  over  $38,000,000. 

In  the  following  year  there  were  36  departures,  one- 
half  of  the  number  with  over  $1,000,000  each,  making  a 
total  of  $35,800,000  for  all. 

In  1862  there  were  37  steamers  from  San  Francisco  for 
Panama.  In  the  fir.st  half  of  that  year  only  two  steamers 
took  over  $1,000,000  each,  but  in  the  last  half  of  the  same 
year  only  one  of  the  steamers  had  less  than  $1,000,000. 
The  total  for  the  37  steamers  was  over  $38,000,000. 

There  were  33  steamers  with  treasure  for  Panama  in 
1863,  carrying  a  total  of  $35,600,000,  showing  an  average 
of  over  $1,000,000  to  each.  One  of  these  was  the  Golden 
Gate,  wrecked  off  the  Mexican  coast,  and  the  treasure  she 
carried  has  never  been  recovered. 

In  1864  the  premium  on  gold  reached  its  highest  point. 
That  was  in  the  month  of  July,  when  the  currency  price 
of  a  gold  dollar  in  New  York  was  264.  On  that  account 
the  shipments  of  gold  from  San  Francisco  to  New  York 
were  unusually  large.  There  were  36  steamers  sent  out 
that  year  with  gold,  the  total  aggregating  over  $47,000,- 
000.  That  was  the  record  year  in  this  movement  by  the 
water  route  for  the  Eastern  and  European  account. 


The  West  the  Best  and  California  the  Best  of  the  West. 


159 


DESCRIPTIONS  OF   SPECIE   EXPORTS 

The  character  of  the  specie  exports  from  San  Francisco  since  1867  in 
one  thousand  dollar  amounts  will  be  found  in  this  table: 


Years 


1867 

1868 

1869 

1870 

1871 

1872 

1873 

1874 

1875 

1876 

1877 

1878 

1879 

1880 

1881 

1882 

1883 

1884 

1885 

1886 

1887 

1888 

1889 

1890 

1891 

1892 

1893 

1894 

1895 

1896 

1897 

1898 

1899 

1900 

1901 

1902 

1903 

1904 

1905 

1906 

1907 

1908 

1909 

1910 

1911 

1912 


Totals 


Gold 
Coin 


$  3,200 
2,612 
7,921 
9,122 
3,612 
11,957 
2,968 
10,817 
24,902 
21,725 
29,594 
694 
78 
42 
5,461 
3,601 
1,362 
1,334 
1,983 
2,799 
3,604 
5,913 
7,379 
5,033 
5,004 
14,637 
10,508 
13,223 
6,323 
11,743 
27,087 
48,855 
12,197 
4,153 
1,744 
337 
1,228 
93 
411 
191 
102 
72 
33 
27 
72 
62 


Gold 
Bullion 


$19,031 
17,662 
13,851 
8,376 
3,020 
7,88J 
9,077 
3,498 
1,065 
3,488 
1,677 
10,752 
3,805 
5,525 
34 
28 
29 
39 
40 
86 
200 
12 
18 
18 
11 
12 
71 
3 
7 
47 
4 
8 
16 
8 
222 
2,581 
1,844 
4,060 
1,667 
5,658 
4 
2 
28,063 
1,970 
2,000 
5,122 


silver 
Coin* 


$351,876  $122,884  $266,201 


$  3,241 
2,210 
3,820 
3,673 
1,957 
1,581 
4,200 
6,276 
8,253 

13,810 

17,094 

12,70ti 
4,372 
2,925 
2,416 
2,522 
4,651( 
9,251 

10,114 
9,298 
6,567 
5,724 

10,126 
6,818 
7,120 

10,714 
9,953 
6,030 

10,341 
8,890 

12,273 
5,414 
4,043 

10,499 

7,033 

5,952 

1,815 

6,091 

7,98t» 

610 

995 

15 

3 

49S 

48 

40 


Silver 
Bullion 


$15,200 

13,874 

11,477 

11,797 

8,664 

7,904 

8,396 

9,449 

8,679 

10,751 

9,360 

10,140 

7,964 

3,681 

3,539 

3,879 

5,707 

6,113 

8,051 

7,748 

8,071 

9,908 

8,459 

302 

583 

3,031 

2,512 

7,319 

8,087 

5,789 

5,427 

3,569 

3,984 

4,572 

4,839 

5,832 

1,119 

4,722 

6,274 

2,492 

3,273 

5,850 

7,966 

7,367 

9,467 

10,712 


I'oreign 
Specie 


$298,710 


$     6 


2 
12 

2 

62 

157 

31 

6 
39 
25 


10 

49 

55 

141 

175 

28 

161 

123 

130 

80 

36 

24 

45 

6 

183 


4 

7 

1 

270 


202 


Total 


$40,672 
36,358 
37,075 
32,968 
17,253 
29,331 
24,641 
30,040 
42,899 
49,782 
57,725 
34,292 
16,219 
12,175 
11,462 
10,032 
11,811 
16,894 
20,219 
19,937 
18,481 
21,582 
25,982 
12,181 
12,767 
28,449 
23,185 
26,750 
24,786 
26,630 
44,914 
57,976 
20,320 
19,268 
13,862 
14,747 
6,012 
15,149 
16,341 
8,955 
4,381 
5,940 
36,335 
9,413 
11,789 
15.936 


$2,071  $1,041,742 


*Includes  Mexican  dollars. 


160  The  West  the  Best  and  California  the  Best  of  the  West. 

Gold  in  the  Mails. 

After  this  somewhat  lengthy  review  it  may  be  thought 
that  the  last  word  on  the  treasure  movement  of  San  Fran- 
cisco had  been  said,  but  that  is  not  true.  Thus  far  the 
review  has  dealt  with  the  more  public  movements  of  specie 
through  custom  house  channels  and  express  service. 

Three  factors  in  this  movement  still  remain  uncovered. 
These  relate  to  the  amounts  sent  through  the  United  States 
mails  on  mercantile  account,  to  the  remittances  of  Gov- 
ernment money  through  the  mails  and  by  express,  and  to 
the  sums  carried  on  the  persons  or  in  the  personal  effects 
of  the  traveling  public. 

As  to  the  mercantile  shipments  of  specie  in  the  mails, 
the  writer  first  became  aware  of  that  movement  in  1879. 
It  may  have  been  in  operation  much  earlier.  But  the  first 
shipment  in  that  way  that  could  be  verified  from  reliable 
authority  was  $485,000  in  gold  coin  in  December,  1879. 

From  that  time  on  monthly  shipments  of  specie  through 
the  mails  on  mercantile  account  were  obtained  by  the 
writer  until  1889,  when  the  submission  of  such  reports  was 
suspended  under  a  rule  adopted  by  the  General  Postoffice 
Department  at  Washington.  The  writer's  record  of  such 
shipment  follows: 

Years  Amount  Years  Amount 

1879 $     485,000  1884 $1,380,800 

1880 7,018,000  1885 10,594,250 

1881 15,980,-500  1886 6,603,1.50 

1882 5,319,550  1887 7,162,000 

1883 1,533,000  1888 3,793,750 


Total  for  the  ten  years $59,870,000 

This  is  the  first  publication  in  this  concrete  form  of  the 
above  information,  and  is  the  record  of  only  ten  consecu- 
tive years.  Most  of  this  nearly  $60,000,000  was  in  gold 
coin.     How  much  was  sent  previously  or  subsequently  in 


The  West  the  Best  and  California  the  Best  of  the  West.  161 

the  mails  from  San  Francisco  has  never  been  made  public 
and  probably  never  will  be.  But  as  the  shipments  for  the 
ten  years  named  were  gathered  personally  by  the  writer, 
he  thinks  it  should  go  into  this  record.  The  mails  are  still 
used  for  this  purpose  by  the  banks  and  mercantile  houses, 
but  to  what  extent  is  not  known.  No  account  is  taken  of 
private  money  orders  received  or  transmitted,  but  very 
large  sums  annually  pass  to  and  fro  in  that  way. 

As  to  the  shipments  of  Government  money  to  and  from 
San  Francisco  in  the  mails,  through  the  express  service 
and  by  special  train  since  1850,  and  in  connection  with 
telegraphic  transfers  by  way  of  the  United  States  Sub- 
Treasury,  it  is  impossible  to  give  even  an  approximate 
statement,  though  some  of  these  movements  were  purely  on 
banking  and  mercantile  account.  It  is  safe  to  say  that 
these  Government  shipments  from  San  Francisco  on  Fed- 
eral account  aggregate  hundreds  of  millions. 

In  the  sixties  the  duties  paid  on  foreign  imports,  always 
in  gold  coin,  averaged  over  $5,000,000  per  annum,  and  it 
was  reported  at  the  time  that  most  of  this  money  was  sent 
to  Government  offices  in  the  East.  The  writer  has  a  record 
of  several  of  these  annual  shipments  of  Government  coin 
in  $5,000,000  and  $10,000,000  amounts. 

Twenty  Millions  Gold  in  One  Shipment. 

At  least  two  important  shipments  of  Government  coin 
from  San  Francisco  across  the  Continent  are  of  record.  In 
the  calendar  year  of  1885  these  shipments  amounted  to 
$30,000,000.  Of  this  sum  $12,800,000  went  through  the 
mails  and  $17,200,000  by  express. 

So  far  as  can  be  recalled,  this  was  the  largest  shipment 
of  the  kind  for  any  one  year  up  to  that  time,  and  so  far 
as  known  there  has  been  no  duplication  of  that  event  in 
amount  or  destination.  But  the  $30,000,000  sent  to  New 
York  or  Eastern  cities  in  1885  was  distributed  throughout 
the  year,  the  total  for  July  showing  the  largest  proportion. 


162  The  West  the  Best  and  California  the  Best  of  the  West. 

The  largest  single  shipment  of  Government  gold  from 
San  Francisco  across  the  Continent  ever  made  occurred  in 
August,  1892,  when  a  specially  guarded  train  took  $20,000- 
000.  This  consisted  of  $10,000,000  in  eagles  and  $10,000,000 
in  half  eagles.  The  entire  amount  was  packed  in  boxes  of 
$40,000  each,  weighing  2,150  troy  ounces.  The  boxes 
were  strapped  and  sealed  and  forwarded  as  registered  mail. 
The  packages  remained  in  the  sub-treasury  on  the  night 
preceding  its  shipment,  and  Colonel  Burns,  who  had  super- 
intended the  count  and  packing,  remained  up  all  night  to 
watch  the  special  guard  placed  over  the  same. 

Some  newspaper  reporters  had  received  a  hint  of  the 
affair,  and  wanted  to  know  all  about  it,  of  course.  The 
only  information  they  could  get  was  that  the  coin  was  to 
be  sent  to  the  Mint  for  lack  of  vault  room  at  the  sub- 
treasury. 

As  evidence  that  this  information  was  not  altogether 
satisfactory,  the  reporters  camped  about  the  entrance  of 
the  sub-treasury  on  the  following  morning  to  see  for  them- 
selves. The  boxes  of  gold  were  placed  aboard  trucks  under 
guard,  and  the  transporters,  accompanied  by  the  reporters, 
took  up  the  journey  to  see  the  disposition  and  learn  the 
actual  destination  of  this  large  amount  of  gold. 

Colonel  Burns'  veracity  was  being  put  to  a  severe  test, 
but  he  was  determined  to  make  good,  even  at  some  extra 
expense,  delay  and  labor.  The  caravan  stopped  in  front 
of  the  high  stone  steps  leading  to  the  entrance  of  the 
United  States  Mint  at  the  corner  of  Fifth  and  Mission 
streets.  All  the  boxes  of  gold  were  transferred  from  the 
trucks  through  the  front  doors  into  the  Mint  building. 
The  reporters  were  convinced  that  Colonel  Burns  had 
given  them  straight  goods,  and  went  back  to  their  respec- 
tive offices  to  write  up  the  story. 

Soon  after,   on  the   same  day,   these   same   boxes  were 


The  West  the  Best  and  California  the  Best  of  the  West.  163 

taken  out  of  a  rear  door  of  the  Mint,  placed  aboard  trucks, 
and  taken  to  the  railway  station,  where  special  cars  were 
waiting  to  receive  the  same. 

Five  cars  were  reserved  for  this  purpose,  and  the  gold 
was  equally  distributed  between  them.  Fifty  armed  men 
accompanied  the  treasure,  ten  to  each  car,  all  properly 
provisioned  for  day  and  night  vigils,  until  relieved  at  New 
York  the  destination  of  the  shipment. 

Three  Hundred  Millions  Sent  to  Denver  Mint. 

A  still  larger  movement  of  Government  coin,  though  less 
spectacular  and  for  a  much  shorter  distance,  occurred  in 
1910,  when,  under  the  superintendency  of  the  late  Judge 
Sweeney,  about  $300,000,000  in  gold  coin  was  transferred 
from  the  United  States  Mint  in  San  Francisco  to  the  United 
States  Mint  in  Denver.  This  movement  was  in  compara- 
tively small  amounts,  and  the  delivery  covered  several 
months. 

The  object  of  this  transfer,  as  given  to  the  press  by 
the  officials,  was  to  create  more  vault  room  at  the  Mint 
in  San  Francisco  for  gold  deposits.  Another  reason  for 
this  removal  of  gold  from  the  Coast  to  the  interior  was 
traced  to  rumors  that  Japan  might  some  day  make  war  on 
the  United  States. 

As  to  the  amount  of  specie  brought  into  San  Francisco 
on  the  persons  or  among  the  personal  effects  of  travelers, 
or  carried  off  in  the  same  way,  there  is  no  reliable  informa- 
tion to  be  had.  Fifty  or  sixty  years  ago,  travelers  prob- 
ably did  carry  enough  money  with  them  to  cover  the 
expenses  of  their  trip.  In  the  pioneer  days  of  California 
it  is  quite  likely  that  miners  returning  to  their  homes  in 
the  East  or  elsewhere  carried  about  their  persons  the  gold 
they  had  secured.  It  has  been  estimated  that  the  1,509 
passengers  for  Panama  leaving  San  Francisco  in  Decem- 


164  The  West  the  Best  and  California  the  Best  of  the  West. 

ber,  1849,  took  on  an  average  $500  apiece,  equal  to  a  total 
of  $754,500,  and  that  the  7,634  passengers  departing  in 
the  same  way  in  1850,  on  the  same  average  basis,  took 
$3,817,000.  No  attention  has  been  paid  in  this  review  to 
such  shipments.  The  endeavor  has  been  to  deal  with  facts, 
and  not  theories. 


MANUFACTURES,  TRADE  AND  TRANSPORTATION 


California  Manufactures. 

If  California  has  not  made  as  rapid  progress  in  the  line 
of  manufactures  as  some  of  the  other  States,  there  are 
good  reasons  for  the  restriction.  One  of  these  lies  in  the 
fact  that  the  people  have  been  largely  occupied  in  other 
and  more  remunerative  lines.  It  was  not  only  the  first 
State  to  give  generous  employment  to  gold  producers,  but 
it  has  maintained  a  large  army  in  such  employment  for 
the  past  sixty-five  years,  or  for  two  years  longer  than  the 
State  has  had  an  existence.  So  long  as  other  mineral 
developments,  grain  and  fruit  raising  furnished  lucrative 
employment  to  the  increasing  population,  there  was  com- 
paratively little  need  to  invest  capital  and  labor  in  build- 
ing up  manufactures.  In  other  words,  so  long  as  manufac- 
tured articles  of  other  sections  of  the  country  or  of  other 
countries  could  be  purchased  in  California  cheaper  than 
they  could  be  made  in  California,  there  was  little  need  to 
waste  good  money  and  valuable  time  in  that  line  of 
industry. 

Despite  these  and  other  reasons  that  might  be  cited  for 
any  apparent  neglect  in  the  development  of  manufactures 
in  California,  it  can  be  truthfully  said  that  a  very  good 
record  has  been  made,  and  that  the  State  is  proud  of  the 


The  West  the  Best  and  California  the  Best  of  the  West.  165 

variety,  the  volume  and  the  superior  character  of  its  manu- 
factures. Any  article  made  in  any  other  part  of  the 
United  States  has  been  made  or  can  be  made  in  California. 
In  proportion  to  population,  the  volume  of  such  product 
has  been  equal  or  can  be  made  equal  to  a  corresponding 
population  elsewhere.  The  quality  of  the  articles  made 
compares  favorably  with  the  best  produced  elsewhere. 

Every  decade  of  California's  history  shows  commend- 
able progress  in  the  line  of  manufactures,  if  any  reliance 
can  be  placed  in  the  census  returns  of  the  United  States. 

According  to  these  returns,  the  capital  invested  in  man- 
ufactures in  1850  was  a  little  over  $1,000,000,  and  the 
value  of  the  output  nearly  $13,000,000.  Ten  years  later 
the  capital  was  over  $22,000,000,  and  the  value  of  the 
product  exceeded  $68,000,000.  At  the  end  of  the  next 
decade  the  capital  was  nearly  $40,000,000,  and  the  value 
of  the  product  was  $66,500,000.  That  decade  witnessed  a 
greater  percentage  of  increase  in  capital  than  in  product, 
from  which  it  might  be  inferred  that  the  profits  were  less. 

In  1880  the  capital  in  California  manufactures  was 
$61,200,000,  and  the  value  of  the  product  $116,200,000.  In 
the  very  next  decade  there  was  more  than  a  doubling  up 
of  capital  and  nearly  a  doubling  up  of  product.  The 
capital  reported  in  1890  was  $146,800,000,  and  the  value 
of  the  product  $213,400,000.  In  1900  the  capital  was  fur- 
ther increased  to  $205,400,000  and  the  value  of  the  product 
was  $302,900,000. 

The  United  States  Census  of  1910  showed  a  capital  of 
$337,134,000  invested  in  California  manufactures  at  the 
close  of  1909,  and  a  value  of  $529,761,000  for  the  product 
that  year.  The  number  of  manufacturing  establishments  in 
California  in  1909  was  7,659 ;  number  of  wage  earners  em- 
ployed, 115,300;  number  of  salaried  officers  and  clerks, 
18,200;   salaries  and  wages,   $107,097,000;   other  expenses, 


166  The  West  the  Best  and  California  the  Best  of  the  West. 

$43,819,000;  cost  of  materials  used,  $325,238,000;  value 
added  by  manufacture  (products  less  cost  of  materials), 
$204,323,000. 

Three  years  have  elapsed  since  the  statistics  in  the 
preceding  paragraph  were  collated.  If  only  the  annual 
increase  between  1900  and  1910  were  to  be  added  for  the 
last  three  years,  the  totals  for  1909  would  be  materially 
increased. 

There  is  little  hesitation  in  saying  that  the  actual  gains 
for  the  past  three  years  have  been  greater  than  in  many 
of  the  previous  five-year  periods.  Of  course,  this  statement 
can  neither  be  proven  nor  denied  by  any  data  available  to  the 
writer.  He  believes  it  to  be  true ;  and,  if  not  true,  it  ought 
to  be. 

There  is  not  a  State  in  the  country  where  the  climate 
is  so  favorable  for  developing  manufacturing  industries  as 
California.  The  climate  is  a  valuable  asset  to  the  manu- 
facturer, and  is  equally  valuable  to  every  worker  in  every 
department.  More  work  can  be  performed  with  less 
fatigue  than  in  any  other  part  of  the  country. 

In  the  earlier  years  the  high  cost  of  coal  and  labor 
operated  to  restrict  the  development  of  manufactures  in 
the  State.  The  great  abundance  of  fuel  oil  and  the  great 
strides  in  the  development  of  electrical  power  in  the  last 
decade  are  valuable  incentives  in  the  interest  of  manufac- 
turers. New  markets  are  being  opened  locally  through 
increased  population  and  from  distant  sources  of  demand 
by  more  favorable  transportation  facilities  and  closer  and 
more  intelligent  relations  with  the  foreign  markets  of  the 
world.  California  is  more  widely  known  today  than  in 
any  previous  year,  and  is  more  generally  and  generously 
appreciated  the  world  around.  Several  new  and  important 
plants  are  promised  in  the  near  future. 

California  is  at  last  coming  into  her  own  in  the  matter 


The  West  the  Best  and  California  the  Best  of  the  West.  167 

of  manufactures.  It  is  one  of  three  important  industries 
that  is  to  receive  increased  attention  hereafter.  A  begin- 
ning has  been  made,  and  there  will  be  no  let  up  until  the 
field  is  wholly  covered. 

To  do  this  rapidly  and  effectually  there  must  be  co- 
operation all  round.  The  assurance  of  economical  power 
to  drive  machinery  has  already  been  secured  in  the  pro- 
duction of  fuel  oil  in  abundance  and  at  reasonable  prices, 
and  in  the  manufacture  of  the  electrical  current  for  light 
and  power.  California  has  astonished  the  country  in  what 
it  has  accomplished  in  these  two  directions,  but  there  are 
more  surprises  of  the  same  character  to  follow.  If  the 
ocean  waves  can  be  harnessed  to  produce  electricity,  as 
is  now  claimed,  California  has  the  biggest  ocean  in  the 
world  at  her  command. 

To  successfully  compete  with  other  sections  of  the 
country,  the  people  at  this  western  end  must  be  content 
to  place  their  capital  and  labor  on  relatively  the  same 
basis  as  the  averages  of  these  factors  prevail  in  other 
States.  One  dollar  must  go  as  far  here  as  in  other  sec- 
tions of  the  country. 

This  is  the  price  which  universal  competition  exacts.  If 
Californians  are  willing  and  able  to  meet  it,  they  can  and 
will  enjoy  their  rightful  part  in  supplying  other  markets 
with  what  it  has  to  spare  in  the  line  of  manufactures,  as 
it  has  been  doing  right  along  in  the  surplus  products  of 
its  soil  and  its  climate. 

The  Mercantile  Business. 

Every  now  and  then  in  some  part  of  the  country  there 
is  a  hue  and  cry  to  get  rid  of  the  middleman,  and  thus 
bring  the  producer  and  consumer  face  to  face.  In  this 
way,  it  is  argued,  both  parties  would  be  benefitted,  the  pro- 


168  The  West  the  Best  and  California  the  Best  of  the  West. 

ducer  receiving  a  higher  value   for  his  product   and  the 
consumer  paying  less  for  the  article  than  he  now  does. 

When'  the  products  of  the  soil,  the  mines  and  the  fac- 
tories can  be  transmitted  without  cost  from  the  source  of 
production  and  preparation  to  the  possession  of  the  con- 
sumers, the  middleman,  whether  a  transporter,  or  a  broker, 
or  a  merchant,  may  be  dispensed  with,  but  not  until  then. 

Many  years  ago  some  California  grain  raisers,  whose 
chief  customers  were  17,000  miles  away,  thought  they  would 
put  themselves  on  velvet  by  getting  rid  of  the  middleman. 
Of  course,  the  great  waste  of  water  between  the  producers 
and  consumers  was  an  obstacle  that  could  not  be  over- 
come altogether.  The  best  they  could  do  under  the  circum- 
stances was  to  charter  their  own  ships  and  load  them 
direct.  As  some  of  these  farms  did  not  abut  against  navig- 
able streams,  it  was  necessary  to  employ  some  other  means 
for  getting  the  grain  to  the  ship.  Crops  were  good  in 
California  that  year,  and  the  farmers  had  a  busy  time  in 
loading  their  ships,  with  a  minimum  amount  of  help  from 
the  middleman.  One  year's  experience  in  that  business 
convinced  them  that  their  theories  of  the  uselessness  of  the 
middleman  were  not  exactly  correct. 

The  middleman  is  a  somewhat  ancient  character.  It 
is  difficult  to  remember  when  he  first  came  into  being.  It 
is  even  more  difficult  to  predict  when  he  will  be  no  longer 
wanted.  If  he  be  an  undesirable  in  the  world's  business, 
he  will  have  to  be  tolerated  for  a  while  longer;  and,  so 
long  as  this  continues  to  be  the  case,  it  is  well  to  treat  him 
courteously.  He  is  a  consumer  himself,  and  has  to  take 
the  same  medicine  and  in  the  same  sized  doses  as  other 
consumers.  If  in  the  evolutions  of  the  future  he  should 
be  displaced  from  his  position,  he  would  have  to  become 
a  producer,  and  thus  make  it  harder  for  existing  producers 
to  get  as  much  for  their  products,  or  he  would  have  to 


The  West  the  Best  and  Calif ormia  the  Best  of  the  West.  169 

affiliate  with  the  class  of  undesirables,  and  so  become  a 
burden  to  producers. 

You  just  let  him  alone.  He  fills  quite  as  legitimate  a 
place  in  the  economics  of  life  as  the  producer  of  raw  or 
manufactured  products. 

The  mercantile  class,  as  a  whole,  is  quite  as  respectable 
as  any  other  representative  body  in  any  community.  They 
are  not  all  honest,  neither  are  they  all  knaves.  They  are 
certainly  up  to  the  average  of  the  communities  they  serve. 
Some  of  them  are  called  captains  of  industry  or  merchant 
princes.  No  one  thinks  of  classing  them  as  servants,  and 
yet  there  is  a  sense  in  which  that  is  true.  A  servant  is  one 
who  serves,  and  every  merchant  is  a  servant,  both  to  the 
producer  and  to  the  consumer. 

It  is  conceded  that  those  engaged  in  the  mercantile  life 
of  California  are  as  good  as  the  average  in  other  States. 
Nothing  beyond  that  is  claimed  for  them,  nor  do  they  claim 
it  for  themselves. 

Some  of  the  pioneer  merchants  in  this  State  had  their 
training  in  Eastern  or  foreign  cities.  Others  entered  mer- 
cantile life  for  the  first  time  here.  There  are  fewer  illus- 
trations of  sons  succeeding  their  fathers  in  business  here 
than  in  some  of  the  older  States,  and  that  is  quite  natural. 
But  there  are  some  cases  of  that  kind  even  in  this  compar- 
atively new  section  of  the  country.  It  is  a  pleasure  to  say 
that  they  are  upholding  the  high  standards  of  business 
integrity  handed  down  to  them  by  those  once  so  active  in 
the  affairs  of  the  world,  but  no  longer  here. 

It  was  a  merchant  of  the  high  Eastern  type  that  led 
others  in  cleansing  San  Francisco  of  ruffians  in  1856.  If 
anything  of  that  kind  should  be  needed  again,  the  man  for 
the  hour  would  be  found. 

Five  times  in  two  of  the  early  years  of  San  Francisco's 
existence  the  city  had  to  be  rebuilt  because  of  extensive 


170  The  West  tlie  Best  and  California  the  Best  of  the  West. 

fires.  The  merchants  were  the  leaders  in  doing  that  work, 
as  they  were  the  principal  sufferers.  It  is  related  that  be- 
fore the  coals  had  ceased  to  glow,  water  was  poured 
upon  them  from  pails,  and  buildings  were  immediately 
started.  Cases  of  that  kind  occurred  at  the  end  of  the  big 
fire  of  April,  1906,  and  in  one  case  at  least  the  new  lumber 
took  fire  from  some  coals  that  had  been  overlooked.  All 
honor  to  the  typical  California  merchant,  fit  to  grace  any 
position  or  to  withstand  any  foe. 

Transportation  Service. 

California  is  not  only  a  very  productive  State  in  variety, 
but  a  very  prolific  State  in  nearly  every  form  of  re- 
source developed.  As  a  result  of  these  conditions,  there 
have  been  good  supplies  for  the  local  demand  and  a  liberal 
surplus  for  export.  All  needed  articles  that  could  not  for 
the  moment  be  produced  here  as  economically  as  else- 
where, with  freight  and  other  expenses  added,  were  im- 
ported. 

Because  of  this  state  of  affairs,  transportation  lines,  both 
by  water  and  land,  have  experienced  as  a  rule  a  profitable 
business  in  serving  California  by  bringing  to  her  ports 
such  commodities  as  were  wanted,  and  taking  away  such 
products  as  could  be  spared.  At  times  the  people  have  had 
to  pay  high  prices  for  this  service,  while  in  other  years  the 
rates  have  been  low  and  unremunerative  to  the  transporter. 

The  Pacific  Coast  service  Avas  the  first  urgent  need  of 
the  transportation  business.  This  led  to  the  building  of 
small  vessels  to  ply  up  and  down  the  coast  with  lumber 
and  other  produce.  Fortunately  the  gold  discovery  brought 
scores  and  even  hundreds  of  sail  vessels  and  steamers  here, 
and  as  at  that  time  there  was  not  sufficient  freight  to  give 
them  outward  cargoes,  they  were  purchased  at  low  figures 


The  West  the  Best  and  California  the  Best  of  the  West.  171 

and  pressed  into  the  Coast  service,  thus    supplying    very 
largely  that  demand  for  many  years. 

As  soon  as  there  was  a  need  for  deep  water  tonnage, 
California  found  no  difficulty  in  having  the  pick  of  the 
world's  best,  so  anxious  were  the  owners  of  vessels  to 
head  them  for  the  golden  shores  of  the  Pacific.  Very  early 
a  forest  of  masts  was  seen  in  the  bay,  the  number  of  sail 
vessels  in  port  exceeding  500. 

During  the  most  active  period  of  the  wheat  export 
trade,  say  for  the  sixteen  years  ending  June  30,  1888, 
there  were  4,696  vessels  of  over  6,000,000  tons  of  registered 
tonnage,  cleared  from  San  Francisco  with  flour  and  grain. 
In  that  fleet  there  were  1,421  American  vessels  of  2,183,900 
tons  of  registered  tonnage,  2,864  British  vessels  of  3,438,- 
900  tons,  and  411  vessels  of  378,600  tons  under  other  for- 
eign flags.  In  one  of  these  years  the  number  of  sail  ves- 
sels cleared  was  559,  including  149  American  and  345 
British. 

When  water  craft  did  not  full}^  meet  the  requirements 
for  quick  despatch  in  supplying  the  State  Avith  the  necessary 
Eastern  and  foreign  goods,  and  in  meeting  the  demand  for 
California  products  in  other  parts  of  the  country  and  of 
the  world,  a  quartette  of  enterprising  local  merchants 
undertook  the  enterprise  of  building  a  continental  railway 
to  connect  with  a  line  that  was  being  built  by  Eastern 
capital  that  had  Ogden,  Utah,  as  its  western  terminal. 
This  was  a  heroic  effort,  requiring  great  courage  as  well 
as  large  capital,  but  it  was  successful. 

The  accomplishment  of  that  event  on  May  9,  1869,  gave 
California  a  continuous  railway  from  Sacramento  to  New 
York.  A  little  later  the  last  gap  between  Sacramento  and 
tidewater  was  closed.  Subsequently  the  same  parties  con- 
structed an  all-rail  line  between  San  Francisco  and  New 
Orleans.     Still  later  there  was  a  line  built  from  San  Fran- 


172  The  West  the  Best  and  California  the  Best  of  the  West. 

Cisco  to  Portland  and  from  Portland  to  Tacoma  and  Se- 
attle, connecting  with  two  overland  railway  lines  from 
those  cities  with  the  entire  railway  system  in  the  Atlantic 
States.  Two  years  ago  still  another  overland  railway 
entered  San  Francisco.  The  building  of  local  railways 
has  kept  pace  with  these  more  extended  lines.  Further 
extensions  are  contemplated  of  the  transportation  service 
both  on  land  and  water. 

From  the  writer's  volume  on  "San  Francisco's  Ocean 
Trade"  the  following  summary  of  ocean  tonnage  arrivals 
at  that  port  has  been  computed,  showing  the  growth  by 
decades : 


Years 

Foreign  Trade 

Domestic  Trade 

Combined  Trade 

Steam 

Total 

Steam 

Total 

Steam 

Total 

1848-50 
1858-67 
1868-77 
1878-87 
1888-97 
1898-07 
1908-12 

534,200 
1,357,600 
2,326,100 
3,556,300 
4,893.700 
9,263,100 
8,350,800 

1,609,200 
2,693,900 
5,285,300 
8,302,500 
11,201.300 
13,829,000 
9,199,200 

123,000 

440,100 

1,840,800 

4,077,200 

7,131,500 

13,842,000 

14,360,400 

2,779,000 
3,889,400 
8,171,300 
10,728,500 
11,696,800 
17,981,900 
17,513,900 

657,200 

1,797,700 

4,166,900 

7,633,500 

12,025,200 

23,105,100 

22,711,200 

4,388,200 
6,583,300 
13,456,600 
19,031,000 
22,898,100 
31,810,900 
26,713,100 

Totals  . 

30,281,800 

52,120,400 

41,815,000 

72,760,800 

72,096,800 

124,881,200 

The  West  the  Best  and  California  the  Best  of  the  West.       ■    173 

REAL  ESTATE  OPERATIONS  IN  SAN  FRANCISCO 


Under  the  village  era  of  Yerba  Buena,  as  San  Fran- 
cisco was  originally  called,  the  first  private  land  titles  were 
granted  in  1835.  The  first  of  these  issued  was  to  J.  A. 
Galindo  for  2,220  acres,  known  as  the  Raneho  Laguna  de  la 
Merced.  Others  for  large  tracts  followed,  until  the  whole 
peninsula  for  thirty  miles  to  the  south  of  the  Golden  Gate 
was  practically  covered  with  these  grants. 

Jacob  P.  Leese  is  credited  with  having  put  up  the  first 
frame  building  in  San  Francisco  in  1836.  In  the  follow- 
ing year  the  same  gentleman  erected  a  more  substantial 
frame  building  on  the  west  side  of  Montgomery,  between 
Clay  and  Sacramento. 

In  a  visit  to  this  port  as  a  sailor  in  1835,  Richard  H. 
Dana  predicted  that  if  California  ever  became  a  prosperous 
country,  the  bay  of  San  Francisco  would  be  the  center  of 
that  prosperity. 

In  his  proclamation  issued  at  Monterey  in  July,  1846, 
Commodore  Sloat  predicted  "a  great  increase  in  the  value 
of  real  estate,"  and  added,  ''the  country  cannot  but  im- 
prove more  rapidly  than  any  other  on  the  Continent  of 
America." 

In  March,  1848,  Edwin  Bryant,  alcalde  of  San  Fran- 
cisco, in  announcing  a  public  auction  offering  of  thirty- 
five  blocks  of  the  water  front  between  Broadway  and 
Folsom,  sought  to  encourage  purchasers  by  saying  "the 
town  is  destined  to  become  the  commercial  emporium  of 
the  western  side  of  the  American  Continent."  These  were 
bold  declarations  for  that  early  period  in  the  history  of 
San  Francisco. 

Jasper  O'Farrell,  an  Irish  civil  engineer,  was  selected 
to  make  a  survey  of  the  lots  thus  offered,  some  of  which 
were  covered  by  water,  and  were  surveyed  by  drawings  on 


174  The  West  the  Best  and  California  the  Best  of  the  West. 

paper.  The  offering  covered  450  lots,  45  by  1371/2  feet. 
There  were  200  of  these  sold  at  prices  ranging  from  $50 
to  $600,  most  of  them  at  or  near  the  inside  figure.  Some 
lots  reserved  for  possible  use  by  the  Government,  located 
between  Clay  and  Sacramento,  were  sold  in  1855  at  an 
average  of  $12,000  each.  This  large  increase  was  due  to 
the  liberal  gold  product. 

Under  a  later  survey  of  ground,  not  so  near  the  bay, 
there  was  an  offering  of  a  large  number  of  50  vara  and 
100  vara  lots,  with  a  sale  of  400  of  the  former  at  $16  each 
and  70  of  the  latter  at  $29  each,  including  the  expense  of 
deeds  and  recording. 

On  the  1st  of  March,  1846.  there  were  30  buildings  of 
all  descriptions  in  San  Francisco.  In  the  following  17 
months  150  more  were  added,  one-fourth  being  adobe 
structures  and  the  remainder  shanties. 

Most  of  the  lots  surveyed  by  O'Farrell  had  been  sold 
prior  to  July,  1849,  and  soon  after  a  new  survey  was 
ordered,  extending  the  building  area  west  as  well  as  north 
and  south.  The  50  vara  lots  in  this  new  survey  were 
offered  at  $200  and  the  100  vara  lots  at  $500.  Lots  covered 
mth  scnib  oak  that  could  be  used  for  firewood  were  given 
the  preference  by  buyers,  who  thus  took  the  precaution  to 
guard  themselves  from  any  possible  loss  on  their  purchases. 

San  Francisco  experienced  its  first  serious  business  de- 
pression in  1854,  incident  to  previous  over-speculation  in 
all  sorts  of  property  and  a  marked  falling  off  in  the  gold 
product.  Real  estate  values  suffered  under  that  period  of 
depression  quite  as  much,  if  not  more,  than  any  other  kind 
of  investment.  The  Henry  Meiggs  failure  for  nearly  one 
million  dollars  was  the  feature  that  year.  In  February  of 
the  following  year  the  bank  of  Page,  Bacon  &  Co.  sus- 
pended, and  this  led  to  other  disasters  of  a  similar  char- 
acter. It  was  the  culmination  also  of  other  disorders  of  a 
social  and  political  character,  some  of  which  a  vigilance 
committee,  in  1856,  endeavored  to  remedy. 


The  West  the  Best  and  California  the  Best  of  the  West.  175 

In  the  Spring  of  1858  a  new  element  of  depression  in 
real  estate  values  in  San  Francisco  was  caused  by  the 
reported  discovery  of  rich  gold  diggings  on  Eraser  River, 
B.  C.  In  less  than  four  months  of  that  year  from  15,000 
to  over  20,000  people  left  the  city  for  the  new  Eldorado  in  the 
North.  Such  a  sudden  exodus  caused  a  further  deprecia- 
tion of  50  per  cent  in  real  estate  values.  This  excitement 
over  gold  on  Eraser  River  was  of  short  duration.  Many 
of  those  first  attracted  to  the  scene  were  on  the  way  back 
before  the  last  of  the  contingent  had  started. 

It  was  a  very  costly  affair  to  those  who  made  the  trip, 
not  only  in  passage  money  and  other  expenses,  and  in  the 
value  of  the  time  consumed,  but  in  the  sacrifice  of  property 
values  to  make  the  start.  Miners  that  were  making  $10 
per  day  in  working  placers  in  California  were  represented 
among  the  deluded. 

The  sales  of  real  estate  in  San  Francisco  in  1858  were 
reported  at  $4,110,800.  Two  years  later,  according  to  the 
same  authority,  these  sales  amounted  to  $8,854,200.  This 
total  shows  a  sharp  reaction  from  the  depression  of  1858. 
During  the  interval  much  new  capital  had  sought  invest- 
ment in  real  estate,  and  the  Market  Street  Railroad  had 
come  into  existence,  making  available  much  new  territory. 
It  was  during  that  interval  that  the  Limantour  and  Shere- 
back  claim  of  nearly  6,000  acres  was  settled. 

The  improvement  which  started  in  1859  continued,  with 
slight  interruption,  for  a  period  of  ten  years.  During  the 
greater  part  of  that  interval  there  was  quite  a  boom  in 
the  business.  Having  started  on  the  up  road,  the  move- 
ment was  accelerated  by  the  prospect  of  an  early  comple- 
tion of  the  first  through  railway  between  the  Pacific  and 
Atlantic,  that  was  to  unite  with  bands  of  steel  San  Fran- 
cisco and  New  York. 

These  conditions  brought  into  existence  quite  a  number 
of  Homestead  Associations  in  this  and  the  adjoining  county. 
Many  large  tracts  of  land  were  secured  and  turned  over 


176  The  West  the  Best  and  California  the  Best  of  the  West. 

to  organizations  to  dispose  of  at  moderate  prices  per  lot. 
These  lots  were  quickly  sold  and  almost  immediately  resold 
at  a  good  advance.  Of  course,  this  had  the  effect  of  stimu- 
lating buying  in  every  new  venture  of  the  kind  that  was 
put  upon  the  market.  These  projects  covered  an  area  of 
territory  that  would  have  accommodated  millions  of  people 
if  they  could  have  been  content  with  a  residence  lot  of  25 
feet  front  and  100  feet  deep. 

The  persons  manipulating  these  speculations  made  much 
of  the  rush  of  immigrants  that  would  come  to  the  city  from 
the  East  as  soon  as  the  through  rail  line  was  opened  for 
travel.  It  was  represented  that  this  crowd  would  be 
simply  immense,  and  that,  of  course,  every  one  represent- 
ing a  family  would  want  a  lot  at  any  price. 

Under  these  representations  these  lots  in  the  Homestead 
Associations  went  off  quickly,  and  the  prices  rose  rapidly, 
some  of  them  selling  at  a  good  advance  before  the  original 
buyers  had  secured  their  deeds. 

It  was  the  greatest  boom  in  residence  lots  the  city  had 
ever  enjoyed,  and  it  has  never  been  repeated,  and  it  is  to 
be  hoped  it  never  will  be,  at  least  under  similar  represen- 
tations, or  rather,  under  similar  misrepresentations. 

The  boom  collapsed  many  months  before  the  laying  of 
the  last  rail  that  united  the  West  with  the  East,  and  it  left 
hundreds  of  lots  in  the  hands  of  purchasers  who  have 
never  been  able  to  get  the  prices  they  paid  for  them.  This 
is  true  of  some  who  got  in  on  the  ground  floor  in  the  latter 
part  of  that  boom  interval,  and  by  ground  floor  is  meant 
the  price  paid  the  associations  for  the  lots.  Of  course, 
those  who  bought  from  second  and  third  hands  have  fared 
worse. 

The  record  value  of  sales  of  San  Francisco  real  estate 
prior  to  1863  is  more  or  less  faulty. 

The  appended  record  of  sales,  mortgages  and  releases 
of  realty  operations  in  San  Francisco  has  been  compiled 
from  the  monthly  reports  of  Thomas  Magee  &  Sons: 


The  West  the  Best  and  California  the  Best  of  the  West.  177 


Deeds 

Mortgages 

Releases 

Vpnrc; 

X  Kiai.  o 

No. 

Amount 

No. 

Amount 

No. 

Amoimt 

1867 

5,556 

$17,640 

2,808 

$  9,994 

1,489 

$  5,768 

1868 

6,724 

27,217 

3,004 

11,452 

1,996 

5,382 

1869 

6,908 

29,938 

3,041 

13,289 

1,771 

5,921 

1870 

4,677 

15,630 

3,089 

13,373 

1,961 

8,500 

1871 

4,016 

12,718 

2,633 

11,462 

2,037 

9,450 

1872 

3,657 

13,127 

2,153 

10,143 

1,527 

8,137 

1873 

3,134 

12,383 

1,684 

7,237 

1,466 

6,141 

1874 

3,854 

23,894 

2,616 

16,873 

2,029 

11,201 

1875 

4,508 

35,889 

2,888 

16,892 

1,894 

9,740 

1876 

3,846 

24,059 

3,741 

17,414 

2,273 

11,805 

1877 

3,085 

18,550 

4,089 

24,368 

2,243 

13,515 

1878 

2,614 

14.584 

2,958 

15,644 

2,356 

15,004 

1879 

2,217 

10,319 

2,325 

9,556 

1,957 

10,343 

1880 

2,331 

13,995 

2,002 

7,173 

1,985 

10,765 

1881 

2,377 

12,234 

1,841 

7,279 

1,915 

9,693 

1882 

2,385 

15,128 

2,023 

10,023 

2,093 

12,013 

1883 

2,937 

15,876 

2,277 

8,221 

2,129 

10,018 

1884 

3,874 

13,374 

2,640 

9,936 

1,976 

8,984 

1885 

3,633 

13,134 

3,050 

9,462 

1,899 

7,176 

1886 

3,101 

15,120 

2,652 

8,676 

8,444 

7,852 

1887 

4,998 

20,745 

3,206 

11,536 

2,226 

7,871 

1888 

5,356 

24,744 

3,382 

13,857 

2,335 

9,721 

1889 

6,736 

33,769 

4,317 

16,347 

2,591 

10,219 

1890 

6,680 

36,546 

4,671 

15,796 

2,500 

9,936 

1891 

6,757 

27,431 

4,607 

17,695 

2,745 

10,972 

1892 

4,958 

20,519 

4,305 

16,061 

2,674 

10,316 

1893 

4,117 

13.621 

3,791 

13,743 

2,514 

9,389 

1894 

3,404 

14,227 

4,343 

17,563 

2. 63  J 

12,666 

1895 

3,515 

15,947 

4,747 

17,652 

2,778 

13,174 

1896 

3,267 

11,545 

4,215 

14,273 

2,680 

10,769 

1897 

3,215 

12,903 

4,322 

13,818 

2,774 

11,246 

1898 

2,645 

10,747 

3,495 

12,357 

2,566 

10,155 

1899 

3,053 

14,555 

4,909 

13,873 

2,926 

13,228 

1900 

3,259 

18,528 

4,010 

17,034 

3,230 

14,712 

1901 

4,261 

29,087 

4,111 

20,148 

3,311 

15,472 

1902 

5,813 

47,397 

4,783 

25,255 

3,953 

20,249 

1903 

6,365 

47,710 

5,194 

30,890 

4,003 

21,347 

1904 

7,073 

45,804 

6,116 

32,978 

3,912 

20,983 

1905 

9,572 

74,926 

6,746 

35,017 

4,751 

23,384 

1906 

8,911 

68,064 

5,488 

35,826 

4,660 

*9,001 

1907 

8,204 

31,816 

6,401 

44,584 

4,134 

1908 

7,418 

31,084 

6,257 

41,842 

4,541 

1909 

7,972 

33,879 

8,005 

44,988 

5,238 

1910 

8,528 

31,291 

8,690 

44,900 

5,790 

'l7,564 

1911 

8,162 

35,269 

8,716 

48.916 

5,827 

20,971 

1912 

7,900 

45,175 

9,504 

58,920 

6,418 

32,893 

♦Imperfect  record  of  cancellations  from  April  1,  1906,  to  January  1,  1910. 


178  The  West  the  Best  and  California  the  Best  of  the  West. 

This  record  of  real  estate  transactions  in  San  Francisco 
for  the  past  46  years,  prepared  monthly  by  the  same  care- 
ful authority,  must  be  accepted  by  the  public  as  approxi- 
mately correct.  It  is  not  assumed  that  it  is  absolutely  cor- 
rect, for,  considering  the  conditions  under  which  the  infor- 
mation has  been  gathered,  perfection  is  simply  impossible. 
The  value  of  the  property  transferred  is  rarely  incorpor- 
ated in  the  deed,  and  there  is  no  law  to  enforce  a  provision 
of  that  kind. 

It  is  different  with  mortgages,  where  there  is  some  evi- 
dence of  the  amount.  The  releases  are  incomplete  in 
amount,  if  not  in  number,  as  the  cancellations  are  not 
always  registered. 

The  variations  in  the  yearly  aggregates  of  deeds  re- 
corded are  supposed  to  reflect  the  conditions  of  the  market 
in  the  years  for  which  they  stand. 

The  year  of  smallest  aggregate  sales  was  1879.  That 
was  the  culmination  of  a  very  dull  period  in  general  busi- 
ness, and  at  the  end  of  a  long  period  of  agitation  over  the 
restriction  of  Chinese  immigration,  and  the  adoption  of  a 
new  State  Constitution  containing  some  radical  features.  It 
took  several  years  to  recover  from  that  period  of  depres- 
sion. 

Ten  years  later  the  market  swung  back  into  the  high 
level  obtained  in  1875  and  for  two  years  the  sales  aver- 
aged $35,000,000  per  annum.  Only  three  years  in  that 
quarter  of  a  century  did  the  annual  totals  figure  in  the 
thirty  million  amounts. 

From  1891  'to  1898  the  general  tendency  was  to  a  dimin- 
ished volume  of  sales.  For  the  first  two  years  of  that 
period  there  was  a  very  marked  decrease  in  the  value  of 
the  sales  recorded,  amounting  practically  to  50  per  cent, 
and  very  little  of  that  loss  was  recovered  during  the 
remainder  of  that  interval,  the  extreme  low  level  of  which 


The  West  the  Best  and  California  the  Best  of  the  West.  179 

was  reached  in  1898,  when  the  total  was  $10,747,000,  or 
about  the  same  as  in  1879,  when  the  record  low  total  for 
a  half  century  was  registered. 

The  unfavorable  conditions  for  the  most  part  during 
that  interval  of  eight  years  were  largely  due  to  the  silver 
agitation  and  inflation  of  the  coin  currency  with  dollars 
that  were  at  a  considerable  discount  as  measured  by  the 
gold  standard  that  the  country  was  theoretically,  if  not 
practically,  under.  This  coin  inflation  led  to  an  unwar- 
ranted extension  of  credits,  culminating  in  the  great  bank 
panic  of  1893. 

From  the  low  level  of  1898  there  was,  with  few  excep- 
tions, steady  expansion  from  year  to  year  until  1905,  the 
year  preceding  the  great  disaster,  when  the  total  reached 
nearly  $75,000,000,  the  largest  total  in  the  history  of  such 
transactions  in  the  city.  The  following  year  was  nearly 
as  good,  despite  the  heavy  losses  by  fire  and  earthquake. 
But  there  was  a  decrease  in  1907.  Since  1910  the  amount 
represented  by  these  sales  has  been  steadily  growing. 

The  sales  in  1906  reached  over  $68,000,000.  For  the 
next  two  years  the  sales  averaged  $31,450,000,  the  differ- 
ence between  these  two  years  being  very  slight.  In  1909 
there  was  an  increase  of  more  than  $2,000,000  over  the 
average  of  the  preceding  two  years.  This  increase  was 
entirely  eliminated  in  1910,  when  the  total  was  $31,291,300, 
the  smallest  amount,  with  one  slight  exception,  since  1901. 

While  there  were  nearly  four  hundred  less  deeds  re- 
corded in  1911  than  in  1910,  the  amount  represented  by  the 
deeds  was  $4,000,000  greater,  showing  that  the  market  was 
again  on  the  up  grade. 

This  was  further  evidenced  in  the  transactions  for  1912, 
which  totaled  over  $45,000,000,  the  largest  sum  since  1904. 

In  1912  there  were  92  sales  between  $40,000  and  $100,- 
000,  together  with  36  between  $100,000  and  $200,000,  while 


180  The  West  the  Best  and  California  the  Best  of  the  West. 

there  were  19  over  $200,000,  the  total  for  those  147  sales 
being  $17,252,000. 

San  Francisco  has  been  practically  rebuilt  some  half-a- 
dozen  times,  incident  to  the  big  fires  to  which  it  has  been 
subjected  since  1849. 

The  improvements  erected  since  the  great  calamity  of 
April,  1906,  have  generally  been  of  a  more  permanent  and 
costly  character,  and  compare  favorably  with  the  best  of 
the  most  modern  type  in  any  American  city. 

Municipal  Indebtedness. 

According  to  one  of  the  early  city  directories,  the  debt 
of  San  Francisco  in  1851  was  $3,000,000,  and  it  was  bearing 
interest  at  the  rate  of  3  per  cent  per  month. 

It  was  some  time  during  that  year,  according  to  the  San 
Francisco  Weekly  Stock  Circular,  that  this  debt  was  funded 
in  20-year  10  per  cent  bonds,  of  which  $1,188,000  was  out- 
standing in  October,  1870,  when  they  were  quoted  by  the 
Stock  Exchange  at  par  and  interest.  The  title  of  the  issue 
was  San  Francisco  Bonds. 

According  to  the  same  authority,  another  issue  was 
authorized  in  1855,  bearing  6  per  cent  interest,  under  the 
title  of  San  Francisco  City  Bonds,  redeemable  in  1875.  Of 
these  bonds,  the  amount  outstanding  was  $217,000,  and 
they  were  quoted  at  95,  the  interest  being  payable  in  New 
York,  whereas,  the  interest  on  the  other  bonds  was  payable 
in  San  Francisco. 

The  City  and  County  of  San  Francisco  were  consoli- 
dated by  Legislative  Act  in  April,  1856.  The  year  previous 
to  this  consolidation  the  expenses  of  the  two  forms  of  gov- 
ernment were  $2,646,000,  whereas,  for  the  first  year  after- 
wards they  were  only  $353,000. 

The  first  bond  issue  after  consolidation  was  in  1858, 
under  the  name  of  San  Francisco  City  and  County  Bonds. 


The  West  the  Best  and  California  the  Best  of  the  West.  181 

These  were  30-year  6  per  cent,  bonds,  of  which  $1,031,000 
was  outstanding  in  October,  1870,  and  then  quotable  at 
84  to  86. 

Some  10-year  10  per  cent  San  Francisco  School  Bonds 
were  issued  in  1860  and  1861,  the  interest  on  the  same 
being  payable  in  New  York.  These  were  practically  all 
redeemed  before  the  close  of  1870. 

The  next  issue  of  School  Bonds  was  in  1866.  These 
were  15-year  10  per  cent  bonds,  and  put  in  the  market  as 
San  Francisco  City  and  County  School  Bonds,  with  interest 
payable  in  San  Francisco. 

The  City  and  County  of  San  Francisco  issued  other 
bonds  between  1862  and  1865,  and  for  other  purposes. 

One  of  these  issues  was  in  the  form  of  a  subscription 
to  the  San  Francisco  and  San  Jose  Railroad,  which  was 
opened  in  June,  1864,  the  first  line  out  of  San  Francisco. 

There  was  another  issue  in  1864  for  account  of  the 
Central  Pacific,  and  still  another  in  1865  for  account  of 
the  Western  Pacific  Railroad.  These  bonds  to  the  railways 
all  bore  7  per  cent  interest,  the  first  issue  being  for  15 
years  and  the  other  two  for  30  years. 

The  City  and  County  of  San  Francisco,  in  1863  and 
1864,  issued  some  Judgment  Bonds  to  run  20  years  at  7 
per  cent. 

On  June  30,  1877,  the  funded  debt  of  the  City  and 
County  of  San  Francisco  then  outstanding,  according  to 
Auditor  Maynard's  report,  was  $4,322,500  in  19  issues, 
of  which  10  bore  7  per  cent  interest  and  the  remainder 
6  per  cent. 

In  1875-76  there  was  a  special  issue  of  $1,500,000  in 
Montgomery  Avenue  bonds,  to  be  paid  by  a  special  tax  on 
the  district  benefited,  and  in  1877  there  was  another  special 
issue  of  $1,000,000  Dupont  Street  bonds,  to  be  met  in  the 
same  way. 


182  The  West  the  Best  and  California  the  Best  of  the  West. 

At  the  beginning  of  the  present  century  San  Francisco 
was  one  of  the  few  American  cities  of  any  size  without 
a  bonded  debt  of  any  kind.  In  the  past  eight  years,  how- 
ever, the  city  has  authorized  a  bonded  debt  of  $97,394,000. 
This  issue  is  clearly  in  excess  of  the  15  per  cent  of  assessed 
value  fixed  by  the  charter,  but  nearly  two-thirds  of  this 
authorized  issue  is  still  unsold.  The  first  issue  for  July 
1,  1904,  consisted  of  $17,174,000  in  Si/o  per  cent  bonds  for 
eight  different  municipal  purposes.  Of  this  issue,  $9,060,- 
000  has  been  cancelled  because  of  the  inability  to  sell  them 
at  par,  the  limit  fixed,  and  $1,758,700  remain  unsold.  In 
1908,  an  issue  of  $18,200,000  in  5  per  cent  bonds  was 
authorized,  of  which  $15,196,000  has  been  sold.  In  1909, 
an  issue  of  $600,000  in  4i/^  per  cent  bonds  was  authorized 
and  sold.  In  1910,  three  bond  issues  of  4^/2  per  cent  was  au- 
thorized, of  which  $600,000  was  for  Polytechnic  High  School, 
$2,020,000  for  a  municipal  railway  on  Geary  street,  and  $45,- 
000,000  for  water  supply.  Of  these  issues,  $44,139,000  remain 
unsold.  In  1912,  two  issues  of  5  per  cent  bonds  were 
authorized,  one  of  $8,800,000  for  a  new  City  Hall,  and  one 
of  $5,000,000  for  the  Exposition.  Of  the  bonds  sold,  $3,353,- 
000  has  been  redeemed,  leaving  the  amount  of  $22,179,300 
outstanding  on  July  1,  1912.  The  City  Hall  and  Exposition 
bonds  have  not  been  sold. 

Assessment  Kolls  and  Taxes. 

The  rate  of  taxation  in  San  Francisco  has  varied  con- 
siderably. In  1856  and  again  in  1857  the  rate  was  $2.30 
for  city,  county  and  State  purposes.  In  1858  the  rate  was 
$2.45,  and  in  1859  it  was  a  fraction  below  $3.17.  For  the 
next  five  years  the  extremes  were  $2.10  and  $2.98.  These 
were  the  rates  for  1863  and  1864. 

In  1861  the  assessed  valuation  of  property  in  San  Fran- 
cisco, real  and  personal,  was  $41,870,800,  while  in  1864  it 
was  $83,197,600. 


The  West  the  Best  and  California  the  Best  of  the  West.  183 

From  1865  to  1869,  both  years  inclusive,  the  tax  rates 
varied  from  $3.12  in  the  first  named  year  to  $3  in  1867. 
In  1869  the  assessment  roll  was  $114,759,500. 

The  extreme  rates  of  taxation  for  those  five  years  have 
never  been  duplicated,  and  it  is  to  be  hoped  they  never  will 
be  while  normal  conditions  prevail. 

The  highest  rate  since  1869  was  $2.97  in  1871.  In  the 
very  next  year  the  rate  was  $1.50  and  in  1874  it  was  a 
fraction  under  $2.10.  In  1872,  1874  and  1875  no  taxes  were 
collected  on  about  $54,000,000  in  mortgages.  In  1876  the 
tax  rate  was  $2,121/2,  in  1878  it  was  $2.24,  and  in  1880  it 
was  $2.21.  In  all  the  other  years  from  1872  to  1894,  in- 
clusive, the  extremes  were,  with  one  single  exception,  from 
$1.50  to  $1.86.  In  1895  the  rate  was  $2.25.  In  the  very 
next  year  it  was  $1.40.  For  the  following  decade  the  range 
was  from  $1.56  to  $1.80.  In  the  first  three  of  the  last  six 
years  the  range  was  $1.86  to  $1.96.4,  while  for  the  last 
three  years  the  rates  have  been  $2,  $2.05  and  $2.09.4.  In 
the  last  six  years  the  assessment  roll  has  increased  from 
$429,632,800  in  1907  to  $604,810,500  in  1912. 


FIRE  UNDERWRITING  IN  CALIFORNIA 


The  pioneer  underwriter  of  California  was  not  back- 
ward in  coming  forward,  for  he  was  found  among  the  early 
immigrants  to  these  shores.  He  was  almost  ready  to  "set 
up"  in  business  before  a  fire  had  been  kindled  in  the  im- 
provised habitations  on  the  dreary  sands  and  hills,  where 
now  stands  the  metropolis  of  the  Pacific.  He  was  for 
organizing  a  company  before  the  State  was  organized,  and, 
of  course,  before  any  laws  were  enacted  covering  that 
branch  of  business.  It  was  fortunate  for  him  that  there 
were  obstacles  in  the  way  of  perfecting  his  schemes.     No 


184  The  West  the  Best  and  California  the  Best  of  the  West. 

doubt  lie  could  have  exacted  liigh  premiums  for  Avriting 
risks  on  the  frail  tenements  which  dotted  the  locality  of 
the  city  in  1849,  but  the  first  serious  fire  would  have  wiped 
him  out.  It  was  equally  fortunate  that  he  failed  to  enlist 
others  in  his  plans  in  that  or  the  years  immediately  follow- 
ing, for  local  capital  invested  in  underwriting  could  never 
have  stood  up  against  the  heavy  losses  incident  to  the 
large  and  disastrous  fires  which  occurred  in  San  Francisco 
in  the  early  years  of  its  history.  The  obstacles  in  the  way 
of  forming  insurance  companies  at  that  early  stage  saved 
the  reputation  of  those  most  eager  to  engage  in  the  enter- 
prise. 

According  to  the  recollections  of  pioneer  citizens.  Bur- 
ling &  McKee,  two  ambitious  young  men  from  Baltimore, 
were  the  first  to  concern  themselves  about  the  formation 
of  local  insurance  companies.  This  was  in  1849,  and  before 
there  had  been  any  legislation  created  to  govern  such 
organizations.  The  very  first  Legislature  under  the  State 
Constitution  supplied  the  needful  laws  in  an  Act  for  the 
formation  of  Mutual  Insurance  Companies.  This  was  sup- 
plemented in  the  Spring  of  1851  by  further  legislation 
along  the  same  line.  But  notwithstanding  these  efforts 
of  the  law  makers  to  open  the  way  for  local  capital  to 
engage  in  the  underwriting  business,  the  desire  to  enter 
that  field  was  not  so  strong  as  it  was  before  the  thing  was 
made  possible.  The  provision  of  these  early  laws  on  the 
subject  were  very  strict,  and  those  who  had  money  to  put 
into  the  business  were  in  consequence  disinclined  to  embark 
in  the  undertaking.  The  hazardous  character  of  nearly  all 
the  local  risks  that  could  possibly  be  secured,  and  the  in- 
sufficient facilities  in  the  way  of  water,  engines  and  hose 
for  suppressing  fires,  also  served  to  make  capitalists  shy 
about  entering  joint  stock  corporations  for  underwriting 
purposes. 


The  West  the  Best  and  California  the  Best  of  the  West.  185 

Five  serious  conflagrations  visited  San  Francisco  in  the 
first  two  years  of  its  occupation  by  goldseekers.  During 
that  interval  the  buildings  of  the  city  were  of  the  frailest 
and  most  combustible  material,  composed  largely  of  old 
ship  hulks,  tents  and  frame  structures  built  of  Eastern 
pine  brought  out  around  Cape  Horn.  These  frame  struc- 
tures were  cloth  and  paper  lined,  with  stovepipes  for  chim- 
neys and  camphene  lamps  for  illumination.  Added  to  these 
favorable  circumstances  for  the  spreading  of  fires  were 
correspondingly  poor  facilities  for  extinguishing  the  flames. 
The  only  water  supplies  were  cisterns  and  carts  in  which 
it  was  carried  from  house  to  house.  There  were  some  small 
hand  engines,  and  plenty  of  willing  hands  and  courageous 
hearts,  but  under  such  adverse  conditions  they  could  accom- 
plish but  little.  A  fire  once  started  generally  had  its  own 
way,  and  swept  everything  in  reach  before  it.  The  losses 
were  frequent  and  severe,  not  so  much  in  the  quantity 
and  value  of  the  property  destroyed — though  these  to  the 
isolated  inhabitants  were  no  inconsiderable  item — as  the 
difficulty  of  recouping,  owing  to  the  great  distance  from 
sources  of  supply. 

First  Fire  Insurance  Company,  and  Still  Here. 

It  was  not  until  1852,  after  these  five  severe  losses  had 
taught  the  people  a  lesson,  that  the  erection  of  brick  and 
otherwise  fireproof  buildings  was  commenced.  Of  course, 
during  the  tinderbox  period,  it  was  next  to  impossible  to 
insure  property  in  the  city.  After  the  construction  of  a 
few  substantial  buildings,  a  foreign  company  was  induced 
to  open  an  agency  here.  This  occurred  in  1853,  when  the 
Liverpool  and  London  and  Globe  Insurance  Company,  Ltd., 
of  England,  established  an  agency  here,  and  put  Joshua  P. 
Haven  in  charge.  Mr.  Haven  was  a  native  of  Philadelphia, 
and  had  been   trained  to  the  underwriting  business.     He 


186  The  West  the  Best  and  California  the  Best  of  the  West. 

naturally  pursued  a  cautious  course,  and  was  critical  as  to 
the  risks  assumed.  The  business  was  spread  over  the 
State,  and  it  was  not  long  before  a  fairly  good  clientage 
was  secured;  and  for  a  time  Mr.  Haven  had  little  else  to 
do  except  to  rake  in  the  premiums,  which  soon  amounted 
to  $10,000  per  month,  most  of  which  was,  of  course,  clear 
profit.  His  first  heavy  loss  was  $12,000  on  the  store  of  J. 
D.  Farwell  on  Clay  street,  near  Front.  This  was  in  1856. 
In  the  Fall  of  the  same  year  the  company  sustained  a  loss 
of  $30,000  on  the  stock  of  William  Hawley  &  Co.,  of  Marys- 
ville.    This  was  settled  with  remarkable  promptness. 

The  Liverpool  and  London  and  Globe  Insurance  Company 
has  never  left  this  field,  and  is,  therefore,  the  oldest  under- 
writing agency  in  California.  It  has  always  conducted  a 
safe  business,  and  has  promptly  met  all  its  obligations. 
Joshua  P.  Haven  was  succeeded  by  William  B.  Johnston, 
and,  upon  the  death  of  the  latter,  Mr.  Charles  D.  Haven 
was  made  resident  secretary,  and  held  that  position 
until  January  1,  1913,  when  he  was  retired  on  a  pension. 
In  early  j^ears  the  business  of  the  company  was  conducted 
in  a  building  on  the  east  line  of  Montgomery,  between 
California  and  Sacramento,  formerly  owned  by  Joshua  P. 
Haven,  who  died  in  1862.  Some  years  later  the  company 
took  possession  of  the  northeast  corner  of  California  and 
Liedesdorff  streets.  The  company  is  now  rebuilding  on  the 
same  site,  because  of  the  damage  to  the  structure,  previ- 
ously occupied,  by  the  big  fire  of  1906.  The  company  was 
organized  in  London  in  1836,  and  entered  the  United  States 
for  business  in  1848. 

In  1854  the  Imperial  Fire  and  Life  Insurance  Company 
of  London  opened  a  fire  agency  in  the  city,  appointing  as 
its  agents  Falkner,  Bell  &  Co.,  who  retained  the  agency 
for  thirty  years. 

The  Monarch  Fire  and  Life  Insurance  Company  of  Eng- 


The  West  the  Best  and  California  the  Best  of  the  West.  187 

land  came  in  soon   afterwards,   but  was  subsequently   ab- 
sorbed by  the  Liverpool  and  London  and   Globe. 

In  the  same  year  an  agency  of  the  Northern  Fire  and 
Life  Insurance  Company  of  Edinburgh  was  established 
here,  with  Smith  Bros.  &  Co.  in  charge. 

First   Eastern   Fire    Insurance    Companies. 

The  first  American  companies  to  enter  the  State  were 
the  Continental  and  Home  of  New  York,  in  1854  or  1855. 
C.  Adolphe  Low  &  Co.  were  the  local  agents  of  the  for- 
mer and  Case,  Heiser  &  Co.  of  the  latter.  Both  had  to 
struggle  for  business,  being  handicapped  by  small  capitals, 
say  $300,000,  whereas  all  the  British  companies  represented 
here  at  that  time  had  large  assets,  and,  of  course,  had  the 
preference  with  the  insuring  public. 

During  this  period,  say  from  1853  to  1855,  several  local 
mutual  organizations  came  into  being.  One  of  these  was 
the  California  Mutual,  which  was  started  in  August,  1853. 
These  were  all  short  lived,  and  cut  but  a  small  figure  in 
the  underwriting  of  the  city. 

After  1855  Eastern  and  foreign  insurance  agencies 
began  to  multiply  in  San  Francisco,  and  this  move  was 
not  without  its  effect  upon  local  capitalists. 

In  the  Fall  of  1855  two  men  left  the  city  for  New  York 
for  the  purpose  of  enlisting  insurance  companies  to  estab- 
lish agencies  in  California.  One  of  these  was  Caspar  T. 
Hopkins,  who  had  been  here  since  1849,  and  the  other  was 
Jonathan  Hunt,  who  had  come  to  the  city  more  recently 
and  for  the  purpose  of  looking  over  the  field  for  insurance 
risks.  Neither  of  these  gentlemen  had  previously  been  en- 
gaged in  the  underwriting  business.  Mr.  Hunt  was  well 
known  in  New  York,  where  he  had  been  engaged  in  the 
mercantile  business,  and  easily  succeeded  in  securing  the 
agencies  of  several  good   companies,  including  the  Home, 


188  The  West  the  Best  and  California  the  Best  of  the  West. 

Niagara  and  Park.  Mr.  Hopkins  was  less  fortunate,  though 
more  persistent,  and  finally  obtained  the  agency  of  the 
Lafarge,  a  company  having  a  small  capital,  and  some  in- 
direct connections  with  five  other  companies. 

In  1857  Edward  McLean  secured  agencies  from  the 
Hartford,  Phoenix  and  Merchants  of  Connecticut,  and  the 
Quaker  City  of  Philadelphia.  Armed  with  these  positions, 
and  with  subsequent  business  partnerships  with  John  Fow- 
ler and  C.  T.  Hopkins,  an  open  war  was  inaugurated  with 
the  high  rates  maintained  by  what  was  known  as  the  Board 
Companies.  This  was  the  first,  but  not  the  last,  struggle 
of  that  kind. 

It  is  not  pretended  that  the  above  were  the  only  East- 
ern and  foreign  insurance  companies  that  had  agencies  in 
this  city  between  1849  and  1859.  There  were  many  others, 
the  names  of  some  of  which  are  not  now  recalled. 

As  early  as  1853  C.  K.  Garrison  was  the  agent  here  of 
the  Hudson  River  and  Franklin  Insurance  Companies  of 
New  York. 

In  1854  the  Metropolitan  of  Boston  was  represented 
here  by  Samuel  A.  Chapin,  and  the  State  Mutual  of  Penn- 
sjdvania  by  William  Mansfield  &  Co.  These  companies 
issued  both  fire  and  marine  policies. 

Mr.  Hopkins  was  of  much  service  in  the  McLean 
agencies  along  the  marine  line  of  business,  being  familiar 
with  shipping  and  making  his  own  surveys.  The  business 
grew,  and  several  more  agencies  were  added,  including  the 
Girard  of  Philadelphia,  the  Goodhue  and  Corn  Exchange 
of  New  York,  and  the  City  Fire  of  Hartford,  besides  the 
agencies  of  four  marine  companies  of  New  York  and  Phila- 
delphia. Sub-agencies  were  established  in  a  number  of  the 
more  important  towns  in  the  interior  of  the  State. 

Other  companies  planted  agencies  in  San  Francisco  in 
1857  to  1859,  including  the  Hamburg-Bremen,  with  Morris 


The  West  the  Best  and  California  the  Best  of  the  West.  189 

Speyer  as  agent;  the  Aetna  of  Hartford,  with  Wm.  Falk- 
ner  and  E.  H.  Parker  as  agents.  There  was  also  a  life 
insurance  company  here  as  early  as  1853  in  the  agency  of 
the  British  Commercial  of  London,  with  a  capital  of 
$3,000,000. 

Insurance  Rates  in  the  Early  Years. 

The  first  local  insurance  organization  was  the  California 
Mutual,  formed  in  August,  1853,  with  Mr.  Fontaquene  as 
manager,  and  Mr.  Malye  as  secretar5^  The  office  was  at 
No.  9  Bartlett  street,  an  alley  running  off  Jackson,  between 
Kearny  and  Dupont.  It  advertised  to  take  risks  on  brick 
buildings  for  six  months  at  3^/2  per  cent  per  month.  There 
was  a  species  of  local  insurance  even  earlier  than  that,  as 
the  record  shows  that  some  private  bankers  advertised  in 
1852  to  take  insurance  risks. 

The  introduction  of  agencies  of  Eastern  and  foreign 
insurance  companies  in  the  early  fifties  wiped  out  these  i 
local  forms  of  underwriting.  The  representatives  of  these 
outside  companies  formed  a  Board  of  Fire  Underwriters 
for  the  regulation  of  rates.  On  first-class  brick  buildings 
the  rate  was  2  per  cent,  and  on  merchandise  stored  in  the 
same  2i/^  per  cent.  On  second-class  brick  buildings  the 
rates  were  2i/2  and  3  per  cent,  respectively.  On  third- 
class,  with  frame  exposure,  the  rates  were  3  and  3%  per 
cent,  respectively.  On  frame  buildings,  plastered,  with 
brick  chimneys,  and  no  frame  exposure  within  150  feet,  3^/^ 
per  cent.  These  were  about  the  only  insurable  risks  in  the  1 
city  until  1858,  when  competition  broke  down  the  rates. 
Presumably,  these  were  the  monthly  rates.  At  this  dis- 
tance they  look  pretty  good,  but  it  is  not  in  evidence  that 
they  were  unusually  high,  considering  the  existing  condi- 
tions at  that  time. 


190  The  West  the  Best  and  California  the  Best  of  the  West. 

First  Mutual  Insurance  Company. 

Charles  D.  Haven  is  quoted  as  authority  for  the  state- 
ment that  the  first  fire  insurance  company  organized  under 
the  laws  of  California  was  the  German  Mutual  Fire  Insur- 
ance Company  of  San  Francisco,  which  was  organized  July 
12,  1858.  J.  W.  G.  Schulte  was  president ;  Frederick  Meyer, 
vice-president;  John  Kohlmoss,  secretary,  and  Nicholas  Van 
Bergen,  treasurer.  Some  of  the  older  residents  remember 
these  gentlemen.  The  office  of  the  company  was  at  136 
Washington  street.  It  was  a  peculiar  organization.  The 
office  was  open  only  one  hour  in  the  day,  and  the  business 
was  restricted  to  the  German  population.  Another  peculi- 
arity was  the  absence  of  any  capital.  A  still  more  remark- 
able feature  is  the  fact  that  the  company  continued  in 
existence  for  ten  years,  issuing  no  policies  after  June  25, 
1868.  Its  business  was  thoroughly  successful.  Every 
dollar  of  loss  was  paid,  and  the  company  retired  honorably 
from  the  field.  The  reason  for  its  retirement  was  the 
enactment  of  a  law  by  the  California  Legislature  requiring 
insurance  companies  in  California  to  have  a  capital  of 
$100,000.  The  company  had  conducted  a  successful  busi- 
ness for  ten  years  without  a  dollar  of  capital,  and  the 
organizers  did  not  see  the  necessity  of  the  guarantee  de- 
manded by  the  new  order  of  things,  and  so  wound  up  the 
business  as  speedily  as  possible  after  the  demand  had  been 
made. 

First  Joint  Stock  Insurance  Companies. 
It  was  really  not  until  1861  that  local  capital  became 
interested  in  local  underwriting.  It  was  certainly  not  until 
that  year  that  the  first  local  joint  stock  company  was  or- 
ganized either  for  fire  or  marine  business.  It  was  during 
the  year  1861  that  the  California  Mutual  Marine  and  the 
San  Francisco  Fire  Insurance  Companies  were  incorporated. 


The  West  the  Best  and  California  the  Best  of  the  West.  191 

The  former  was  reincorporated  in  1864  as  the  California 
Insurance  Company.  The  San  Francisco  Fire  Insurance 
Company  had  a  short  but  honorable  career.  It  was  incor- 
porated in  March,  1861,  a  month  after  the  incorporation  of 
the  California.  Its  capital  was  $300,000.  Its  first  secretary 
was  George  C.  Boardman,  who  subsequently  became  presi- 
dent of  the  company.  Business  was  good  from  the  start, 
though  the  subsequent  multiplication  of  other  companies  in 
the  city  resulted  in  considerable  competition  and  the  nar- 
rowing of  profit  margins.  The  stockholders,  in  view  of 
this  competition,  on  the  8th  of  June,  1868,  by  a  vote  of 
2,566  shares  out  of  a  possible  3,000  shares,  decided  to  dis- 
incorporate, and  the  risks  were  soon  afterwards  reinsured 
with  the  Liverpool  and  London  and  Globe  Insurance  Com- 
pany. The  San  Francisco  Fire  Insurance  Company  paid 
several  liberal  dividends,  the  last  one,  which  was  for  the 
first  quarter  of  1868,  being  at  the  rate  of  1%  per  cent  per 
month. 

After  the  incorporation  of  the  California  and  San  Fran- 
cisco, it  became  a  comparatively  easy  matter  to  enlist  capi- 
tal in  the  local  underwriting  business,  though  it  took  the 
people  about  two  years  to  be  educated  up  to  that  point. 

In  1863,  three  of  these  local  organizations  were  launched. 
These  were  the  Merchants'  Mutual  Marine,  the  Fireman's 
Fund,  and  the  Pacific.  In  1864  two  more  came  into  exist- 
ence under  the  names  of  the  California  Home,  and  the 
Home  Mutual.  In  1865  three  more  were  added,  bearing  the 
names  of  the  Occidental,  the  Union  and  the  National.  The 
Builders',  a  sort  of  monstrosity,  was  the  only  addition  in 
1866.  The  People's  came  into  existence  in  1867,  the  Me- 
chanics' in  1868,  and  the  Oriental  in  1869.  Then  followed 
a  rest  of  two  years,  during  which  it  was  thought  enough 
of  these  corporations  had  been  formed. 

In  1871  the  State  Investment  was  incorporated,  followed 


I 


192  The  West  the  Best  and  California  the  Best  of  the  West. 

in  1872  by  the  Commercial  from  the  ashes  of  the  People's, 
burned  out  in  the  great  Chicago  fire  of  1871. 

In  1874  the  California  Farmers'  and  the  Alameda 
County  were  incorporated.  It  was  four  years  before  there 
was  another  venture  of  that  kind,  and  this  was  given  the 
name  of  the  Western.  After  a  lapse  of  two  years,  the  Oak- 
land Home  sprang  into  existence,  and  in  the  following  year 
the  Sun  Insurance  of  San  Francisco  shed  its  first  beams  on 
the  public.  In  1885  the  new  corporations  were  the  South- 
ern California  and  the  Anglo-Nevada,  followed  in  1888  by 
the  Alta. 

Twenty-five  Locals  in  Thirty  Years. 

From    the    foregoing    statement    it    will    be    seen    that 
twenty-five  companies  had  been  organized  under  the  laws 
of  California  for  the  purpose   of  fire   and  marine   under- 
writing prior  to   1889.     There   was   an  interval   of  thirty 
years  between  the  organization  of  the  first  and  the  last  of 
these  companies,  one  coming  into  existence  in  1858  and  the 
other  in  1888.    There  were  no  further  organizations  of  this 
character  formed  in  the  State  for  many  years  afterwards. 
The  first  of  these  was  a  purely  mutual  organization,  and  of 
San   Francisco    origin,    while   the   last   was    a   joint    stock 
organization   and   originated   in   Stockton.     All  the   above 
companies    were    started    in    San    Francisco,    except    four. 
These  exceptions  were  the  Alameda  County  and  Oakland 
Home  in  Oakland,  the  Southern  California  in  Los  Angeles, 
and  the  Alta  in  Stockton.     The  first  organized  of  the  above 
list  had  an  existence  of  ten  years  and  the  third  of  seven 
years.     The  San  Francisco  Fire  Insurance  Company  issued 
its  first  policy  in  April,  1861,  and  paid  its  first  dividend  in 
the  following  August.    In  all,  it  paid  its  stockholders  $302,- 
000  in  dividends,  and  at  the  final  winding  up  the  capital 
was  returned  in  full,   together  with   a  surplus  of  20   per 
cent.     It  must  ever  be  remembered,  to  the   credit   of  the 


The  West  the  Best  and  California  the  Best  of  the  West.  193 

managers  of  these  two  pioneer  insurance  companies,  both  of 
which  retired  in  1868,  that  they  met  all  obligations 
promptly  and  in  full,  and  with  profit  to  all  concerned. 

There  were  two  other  retirements  in  1868.  These  were 
the  National  and  the  Builders.  The  National  was  organ- 
ized in  December,  1865,  with  a  capital  of  $1,000,000  in 
greenbacks  invested  in  United  States  7.30  bonds.  This  was 
the  first  and  only  company  started  in  the  city  on  a  paper 
money  capital.  That  fact  constituted  its  chief  element  of 
success.  The  greenbacks  were  purchased  at  a  heavy  dis- 
count, as  they  were  down  to  a  gold  value  of  about  35e  to 
the  dollar  in  July,  1864.  The  bonds  were  bought  with  this 
depreciated  money.  The  company  continued  in  existence 
a  little  over  two  years,  declining  to  take  further  policies 
on  June  12,  1868.  The  company  paid  $120,000  in  dividends 
in  1867  and  $30,000  for  the  first  quarter  of  1868,  or  $150,- 
000  in  all.  In  the  final  dissolution  of  the  company  the 
bonds  were  sold  to  good  advantage,  greenbacks  in  the 
meantime  having  shown  much  appreciation  in  value.  More 
money  was  made  out  of  this  appreciation  than  from  the 
insurance  end. 

The  Builders'  Insurance  Companj'  retired  from  busi- 
ness in  1868,  but  not  voluntarily.  It  had  an  existence  of 
about  two  years.  It  was  brought  into  being  by  Thomas 
Mooney  as  a  sort  of  adjunct  to  his  savings  bank.  It  wrote 
on  everything  offered,  and  had  the  largest  line  of  risks  in 
proportion  to  capital  of  any  of  the  local  companies.  It 
was  closed  up  by  the  Commissioners. 

The  Oriental  was  organized  in  June,  1869,  and  was  in 
existence  for  less  than  one  year.  It  never  paid  a  dividend, 
and  was  closed  up  by  the  Commissioners  for  its  refusal 
to  repair  its  impaired  capital. 

Thus,  of  the  fourteen  companies  incorporated  between 
1861  and  1869,  both  years  inclusive,  five  failed  to  survive 
the  decade  in  which  they  came  into  existence. 


194  The  West  the  Best  and  California  the  Best  of  the  West. 

Just  when  and  how  the  California  Home  and  the  Me- 
chanics' Insurance  Companies  retired  is  not  recalled.  They 
were  incorporated  in  1864  and  1868,  respectively,  but  were 
not  mentioned  in  subsequent  reports  of  local  companies, 
and  must  have  come  to  a  premature  end. 

At  the  close  of  1869  the  only  local  companies  in  exist- 
ence were  the  California,  Fireman's  Fund,  Home  Mutual, 
Merchants'  Marine,  Occidental,  Oriental,  Pacific,  People's 
and  Union. 

These  companies  had  a  paid-up  capital  at  that  time  of 
$3,783,600,  and  gross  assets  of  $5,864,892.  They  reported 
an  income  for  1869  of  $2,539,658  from  premiums  and  $478,- 
234  from  other  sources.  Losses  paid  for  the  same  year 
were  $1,290,000,  while  the  dividends  to  stockholders  were 
$464,344.  They  wrote  $119,925,300  in  fire  and  $78,942,000 
in  marine  risks  in  1869,  and  had  outstanding  at  the  close 
of  that  year  $92,850,500  in  fire  and  $12,386,800  in  marine 
risks.  That  was  the  condition  of  affairs  at  the  end  of  the 
first  decade  of  local  underwriting  in  San  Francisco. 

Insurance  Combination  and  Supervision. 

The  first  Board  of  Fire  Underwriters  was  organized  in 
1861,  and  the  first  Board  of  Marine  Underwriters  in  1864. 
There  was  a  sort  of  compact  among  the  agents  of  Eastern 
and  foreign  companies  doing  business  in  the  State  previous 
to  1861. 

In  1865  the  Pacific  Insurance  Union  was  organized  after 
three  years  of  labor.  This  was  an  organization  that  took 
in  all  the  companies  and  agencies  doing  business  in  Cali- 
fornia, Oregon  and  Washington  Territory.  It  included  108 
organizations,  representing  $350,000,000  of  capital,  and  hav- 
ing an  annual  income  of  $6,000,000. 

Even  with  all  these  safeguards,  the  business  was  greatly 
demoralized,   especially   in   1867,   possibly   after  there   had 


The  West  the  Best- and  California  the  Best  of  the  West.  195 

been  some  breaches  in  the  ranks.  Up  to  that  time  no  State 
officer  had  been  charged  with  the  supervision  of  the  busi- 
ness. In  March,  1868,  this  want  was  supplied  by  the  Leg- 
islature, then  in  session,  which  created  the  office  of  Insur- 
ance Commissioner,  and  enacted  some  other  necessary  leg- 
islation along  that  line.  George  W.  Mowe  was  the  first 
Commissioner  appointed  under  the  new  law,  and  Andrew 
D.  Smith  was  his  deputy.  This  action  cleared  the  atmos- 
phere of  many  irregularities  and  abuses  that  had  become 
attached  to  the  underwriting  business  in  the  State  in  the 
second  decade  of  its  history. 

Heavy  Fire  Losses. 

The  first  decade  of  underwriting  in  California  was  a 
trying  one  to  Eastern  and  foreign  companies  represented 
here,  owing  to  frequent  and  serious  conflagrations  in  the 
State,  particularly  in  San  Francisco. 

The  second  decade  was  noted  for  heavy  marine  losses, 
owing  in  part  to  the  destruction  of  the  Arctic  whaling  fleet 
by  the  pirate  steamer  Alabama,  sent  out  in  the  interests 
of  the  Southern  Confederacy. 

The  third  decade,  from  1870  to  1879,  witnessed  three 
large  fires  in  Virginia  City,  Chicago  and  Boston.  The  Chi- 
cago fire  started  October  7,  1871.  It  was  the  largest  fire 
known  in  this  country  up  to  that  time.  In  a  few  hours  the 
accumulation  of  years  went  up  in  smoke  or  fell  to  the  earth 
in  ashes.  That  fire  covered  an  area  of  1,800  acres  in  the 
business  and  residence  portion  of  the  city,  and  sent  85,000 
people  into  the  streets  homeless.  There  was  widespread 
sympathy  for  the  sufferers,  and  thousands  of  dollars  were 
sent  from  all  parts  of  the  country  to  relieve  the  wants  of 
the  destitute. 

On  November  9,  1872,  occurred  the  great  Boston  fire, 
one  of  the  severest  ever  experienced  in  that  city. 


196  The  West  the  Best  and  California  the  Best  of  the  West. 

On  October  26,  1875,  Virginia  City,  Nevada,  was  visited 
by  an  extensive  and  costly  conflagration,  which  swept  away 
half  of  the  business  portion  of  the  city,  and  destroyed  the 
homes  of  a  thousand  or  more  of  the  inhabitants. 

These  three  great  fires  affected  all  the  local  insurance 
companies  to  a  greater  or  less  extent.  At  that  time  most 
of  the  local  companies  had  established  agencies  in  the  At- 
lantic States,  and  had  worked  up  considerable  business  in 
the  great  cities.  The  first  blow  was  the  severest  of  all, 
but  the  second,  coming  so  soon  afterwards,  though  less 
severe,  was  felt  quite  as  keenly,  because  it  struck  the  com- 
panies in  an  enfeebled  condition.  The  third  blow,  three 
years  later,  though  less  serious  than  either  of  the  other  two, 
came  home  with  considerable  force,  because  struck  at  short 
range. 

Fortunately,  the  intervening  years  had  been  good  ones 
to  local  underwriters,  enabling  them  to  partially  recover 
from  the  losses  of  1871  and  1872.  Besides,  the  experience 
of  those  years,  though  dearly  purchased,  had  exercised  a 
salutary  effect  on  the  managing  officers,  resulting  in  more 
caution  and  a  better  distribution  of  risks  and  reinsurance. 
The  Chicago  fire  upset  all  previous  data  of  average  fire 
losses  to  average  fire  premiums,  and  thus  the  work  of  a 
century  went  for  naught.  Underwriters  were  taken  off 
their  feet  by  these  calamities.  Up  to  that  time  there  had 
been  no  precedent  for  calculating  the  results  of  such  an 
event.  It  was  thought  such  a  combination  of  calamities 
might  never  happen  again,  and  certainly  not  for  a  genera- 
tion or  more,  and  that  seemed  to  be  a  sensible  conclusion. 

Big  Chicago  Fire  Burns  Out  Three  Locals. 

One  of  the  results  of  the  Chicago  fire  was  to  wipe  from 
existence  three  of  the  local  companies,  having  a  paid-up 
capital  of  $1,600,000.     One  of  these  was  the  largest  and 


The  West  the  Best  and  California  the  Best  of  the  West.  197 

strongest  of  the  companies  then  in  operation.  This  was 
the  Pacific,  which  was  organized  in  July,  1863,  with  a 
capital  of  $750,000,  subsequently  increased  to  $1,000,000  by 
capitalizing  $250,000  of  surplus.  The  company  took  a  lead- 
ing place  from  the  start.  It  had  a  large  and  well  selected 
list  of  stockholders,  including  many  of  the  most  prominent 
business  men  of  the  city.  For  the  year  1866  its  income 
from  all  sources  was  $587,080.  It  had  then  been  in  exist- 
ence only  thirty  months,  and  was  paying  dividends  of  2 
per  cent  per  month.  Four  quarterly  dividends  of  $6  per 
share,  amounting  to  $180,000,  were  paid  in  1866.  These 
dividends  were  not  kept  up,  being  altogether  too  liberal. 
In  the  following  year  the  company  paid  only  $60,000  in 
cash  dividends,  omitting  the  dividend  for  the  last  quarter 
of  that  year.  It  was  in  that  year  that  $250,000  was  taken 
from  the  surplus  and  added  to  the  capital  stock.  A  stock 
dividend  of  corresponding  amount  was  given  to  the  share- 
holders. This  was  considered  ample  compensation  for  the 
decreased  amount  received  in  cash  dividends  in  1867. 

The  Pacific  was  getting  into  good  shape  in  1871,  just 
before  the  Chicago  fire.  It  had  established  agencies  in  New 
York,  Chicago,  Denver,  Salt  Lake,  Virginia  and  Portland, 
in  this  country,  besides  foreign  agencies  in  China,  Japan, 
Australia,  the  Hawaiian  Islands,  South  America  and  Great 
Britain.  In  1866  it  absorbed  the  local  agencies  previously 
held  by  Bigelow  &  Brothers  of  this  city,  which  included 
the  Arctic,  Home,  Phoenix,  and  "Washington  of  New  York, 
and  the  Hartford  of  Connecticut.  In  consideration  of  this 
amalgamation,  H.  H.  Bigelow  was  made  general  agent  of 
the  Pacific.  Jonathan  Hunt  was  president,  and  A.  J. 
Ralston  was  secretary.  When  the  telegraph  announced  the 
fire  in  Chicago,  the  assets  of  the  Pacific  were  $1,750,000, 
or  $750,000  above  capital  stock.  It  was  first  thought  that 
the  company  could  stand  up  under  its  loss,  and  an  assess- 


198  The  West  the  Best  and  California  the  Best  of  the  West. 

ment  of  75  per  cent,  was  levied  to  cover  the  claims.  Fur- 
ther investigation  convinced  the  stockholders  that  the 
entire  assets  of  the  company  had  been  wiped  out,  and  that 
the  only  thing  to  do  was  to  go  into  insolvency,  which  was 
done. 

Another  local  company  involved  in  the  Chicago  fire  was 
the  Occidental,  organized  in  1865  with  a  capital  of  $300,- 
000,  and  a  well  selected  directory  of  leading  business  men. 
It  was  a  purely  fire  company,  with  Chr.  Christiansen  as 
president,  and  B.  Rothschild  as  secretary.  The  manage- 
ment was  cautious,  and  only  first-class  risks  were  accepted. 
Eastern  agencies  were  opened.  Large  lines  had  been  writ- 
ten in  Chicago.  The  fire  came  and  the  Occidental  went. 
It  had  never  met  the  enemy  before-  in  such  deadly  conflict, 
and  it  lost  the  battle,  the  entire  assets  being  annihilated. 
No  attempt  was  made  to  start  anew. 

The  People's  was  the  third  local  company  to  suffer  by 
the  same  event  in  Chicago.  This  company  was  incorporated 
October  30,  1867,  with  a  capital  of  $100,000.  It  was  known 
as  a  popular  company.  It  was  not  considered  as  conserva- 
tive as  some  of  the  others,  and  that  probably  was  what 
made  it  popular  with  a  certain  class  in  every  community. 
It  was  organized  for  business,  and  the  managers  went  for 
everything  in  sight.  Naturally,  they  were  not  over-critical 
as  to  hazards.  If  the  property  owner  wanted  to  insure 
and  was  willing  to  pay  the  premium  demanded,  the  bargain 
was  generally  closed.  Good  luck  attended  the  company 
from  the  start.  The  losses  were  small  compared  with  the 
premium  realized.  The  business  was  extended  to  the  At- 
lantic States.  That  of  itself  was  not  a  bad  move.  It  scat- 
tered the  liabilities  of  the  company,  which  is  regarded  as 
sound  underwriting.  The  company  soon  commenced  the 
payment  of  dividends.  The  capital  was  increased  to  $300,- 
000.     The  Chicago  fire  occurred.     The  People's  had  large 


Tlie  West  the  Best  and  California  the  Best  of  the  West.  199 

risks  there,  and  all  was  gone.  The  stockholders  submitted 
to  the  inevitable,  and  went  into  liquidation.  Of  the  paid- 
up  capital,  $100,000  was  taken  from  surplus  earnings. 

The  destruction  of  these  three  local  companies  by  the 
Chicago  fire  wiped  out  $2,550,000  of  capital  and  reserve, 
and  left  nothing  but  ashes. 

Two  other  local  companies  suffered  by  the  same  confla- 
gration. These  were  the  Fireman's  Fund  and  the  Union. 
At  that  time  the  capital  of  the  former  was  $500,000  and  of 
the  latter  $750,000.  After  the  fire  there  was  a  consultation 
of  the  directors  of  both  companies.  The  field  was  can- 
vassed. It  was  known  that  the  Pacific,  Occidental  and  Peo- 
ple's were  hopelessly  involved.  For  the  fair  name  of  San 
Francisco,  it  was  resolved  to  let  that  suffice,  and  to  save 
the  other  two  companies.  Some  of  the  stockholders  who 
had  lost  all  in  the  three  companies  which  had  gone  into 
liquidation  were  also  stockholders  in  the  other  two  crip- 
pled companies.  They  resolved  to  stand  by  their  fellow 
stockholders,  and  thus  save  at  least  two  brands  from  the 
terrible  ordeal. 

The  Fireman's  Fund  levied  an  assessment  of  50  per 
cent,  and  the  stockholders  put  up  $250,000  of  new  money. 
The  Union  levied  an  assessment  of  45  per  cent,  amounting 
to  $337,500,  which  was  promptly  paid  in.  A  year  later 
both  companies  were  caught  in  the  great  Boston  fire.  In- 
stead of  levying  another  assessment,  the  Fireman's  Fund 
restored  its  impaired  capital  by  writing  off  $200,000,  thus 
reducing  it  to  $300,000.  The  Union  stockholders  went 
without  their  dividends  for  a  time.  These  were  heroic  acts, 
but  both  companies  were  subsequently  prospered,  and  were 
held  in  higher  reputation  than  before. 

Only  Strictly  Marine  Company  Retires. 

Another  event  of  the  third  decade  was  the  retirement 
from  business  of  the  Mutual  Marine,  the  only  purely  marine 


200  The  West  the  Best  and  California  the  Best  of  the  West. 

insurance   company  that   ever  had   an   extended  career  in 
the    city.      This   company   was   incorporated   on   April   20, 
1863,  with  a  capital  of  $500,000  in  100  shares.     The  pro- 
moters evidently  designed  to  have  it  a  very  select  organiza- 
tion.    Four  years   passed,    and   their  minds  underwent   a 
slight   change.      The    number   of   shares   was   increased   in 
July,  1867,  to  1,000  to  the  par  value  of  $500.     This  change 
multiplied  the  number  of  stockholders,  but  not  to  the  same 
extent  as  $100  shares  would  have  done.    The  first  dividend 
was  paid  in  February,  1868,  at  the  rate  of  $5  per  share. 
These  dividends  were  maintained  for  forty-seven  consecu- 
tive months.     There  were  also  four  extra  dividends  of  $15 
per  share  each  in  the  same  interval.     These  were  paid  in 
August,  1869,  January  and  July,  1870,  and  January,  1871. 
The   last   regular   dividend   was   paid   in   December,    1871. 
The  company  capitalized  $250,000  of  its  surplus  earnings 
before  it  began  paying  dividends.     The  company  was  pros- 
perous so  long  as  it  confined  its  business  to  this  port.     It 
established    agencies   in   New  York,   Liverpool,    Hongkong 
and  other  foreign  ports,  and  made  a  net  loss  of  $256,900 
on  those  agencies.     At  the  close  of  1873  it  was  decided  to 
wind  up  the  business,   and  the  dissolution  was  completed 
by  order  of  the  Court  in  January,  1881.     It  not  only  re- 
turned the   original  capital  in  full,  but  $583,000  in  divi- 
dends. 

New  Companies  and  Retirements  in  1880-9. 

The  fourth  decade  of  local  underwriting  in  California 
was  characterized  by  a  variety  of  events.  Five  new  organ- 
izations came  into  being  between  1880  and  1889.  These 
were  the  Oakland  Home,  with  a  capital  of  $200,000;  the 
Sun,  with  a  capital  of  $300,000 ;  the  Anglo-Nevada,  with  a 
capital  of  $2,000,000;  the  Southern  California,  with  a  cap- 
ital of  $200,000,  and  the  Alta,  with  a  capital  of  $200,000. 


The  West  the  Best  and  California  the  Best  of  the  West.  201 

Three  of  these  were  located  at  Oakland,  Los  Angeles  and 
Stockton,  respectively.  These  were  the  Home,  Southern 
and  Alta  in  the  order  named.  The  Sun  and  Anglo-Nevada 
were  San  Francisco  corporations. 

Three  of  these  went  out  of  existence  during  the  decade 
that  brought  them  into  being.  These  were  the  Alta,  South- 
ern California  and  Anglo-Nevada. 

The  full  title  of  the  last-named  was  the  Anglo-Nevada 
Assurance  Corporation.  It  was  organized  in  November, 
1885,  with  a  larger  capital  than  had  ever  been  given  to  an 
insurance  company  under  the  laws  of  California.  It  was 
the  intention  of  the  promoters  to  make  it  the  leading  under- 
writing company  of  the  Pacific  Coast.  James  C.  Flood  and 
John  W.  Mackay  were  prominent  in  the  movement.  It  paid 
its  first  quarterly  dividend  for  the  last  three  months  of 
1886  in  January,  1887,  at  the  rate  of  1^/2  per  cent.  Two 
more  quarterly  dividends  of  the  same  amount  were  paid  in 
the  following  April  and  July.  Then  came  a  slump  of  bad 
luck  in  the  loss  of  several  wheat  ships  on  which  risks  had 
been  written. 

The  company  resumed  dividends  in  March,  1889,  at  the 
rate  of  50c  per  share  monthly,  and  these  were  maintained 
until  the  close  of  that  year,  making  a  total  of  $180,000  re- 
turned in  dividends  to  stockholders.  Soon  afterwards  the 
company  went  out  of  business,  reinsuring  its  risks  in  the 
London  and  Lancashire  and  the  Fireman's  Fund. 

The  Southern  California  of  Los  Angeles  and  the  Alta  of 
Stockton  declined  further  business  in  1892,  both  reinsuring 
their  risks  in  the  London  and  Lancashire.  The  former  paid 
$28,000  in  three  dividends.    The  Alta  paid  no  dividends. 

Four  other  companies  retired  during  the  same  decade. 
These  were  the  California,  Commercial,  Union  and  Western. 

The  Commercial  Insurance  Company  was  organized  in 
February,  1872,  as  the  successor  of  the  People's.    It  had  a 


202  The  West  the  Best  and  California  the  Best  of  the  West. 

prosperous  career  for  several  years  on  a  paid-up  capital  of 
$200,000.  This  was  more  than  doubled  in  addition  to  reg- 
ular monthly  dividends  of  1  per  cent.  A  turn  of  bad  luck 
in  1889  resulted  in  the  suspension  of  dividends,  followed 
at  the  end  of  that  year  by  an  assessment  of  $30  per  share 
to  repair  impaired  capital.  On  the  1st  of  January,  1890, 
it  was  decided  to  wind  up  by  reinsuring  the  risks  in  the 
Palatine  of  Manchester,  England. 

The  Western,  organized  in  1878  with  a  capital  of  $200,- 
000.  The  company  paid  $52,000  in  dividends  from  1880  to 
1883,  voluntarily  retiring  from  business  in  1886  by  reinsur- 
ing its  risks  in  the  State  Investment,  which  then  doubled 
its  capital. 

Union  Sells  to  Alliance  at  Good  Figure. 

The  Union  Insurance  Company  was  absorbed  by  the 
Alliance  of  London  in  1891,  after  having  been  in  continuous 
and  successful  existence  from  April,  1865.  The  deal  was 
made  through  the  purchase  of  a  control  in  the  capital  stock. 
Under  this  manipulation  the  stock  rose  from  80  in  Septem- 
ber, 1891,  to  109  by  the  end  of  the  following  October.  The 
cost  price  at  which  the  transfer  of  capital,  assets  and  good 
will  was  effected  was  $119  per  share,  making  a  total  of 
$892,400.  The  paid-up  capital  was  $750,000.  The  company 
erected  the  three-story  brick  building  it  occupied  in  1865. 
This  was  the  first  substantial  improvement  in  that  block 
on  California  street.  The  losses  of  the  company  in  the 
Chicago  fire  amounted  to  $500,000,  which  was  partially 
made  good  by  the  assessment  levied  on  the  stockholders. 
Apart  from  that  loss,  the  company  earned  15  per  cent  per 
annum  for  twenty-five  consecutive  years,  of  which  9%  per 
cent  was  derived  from  investments  and  5%  per  cent  from 
the  underwriting  business  proper.  During  that  quarter  of 
a  century  it  paid  its  stockholders  an  average  of  12%  per 


The  West  the  Best  and  California  the  Best  of  the  West.  203 

cent  per  annum  in  dividends.  The  Alliance  Company  con- 
tinued the  business  in  the  building  erected  by  the  Union 
Insurance  Company  until  the  same  was  destroyed  by  the  big 
jBre  of  April,  1906.  It  suffered  heavily  on  its  California 
business  in  that  fire.  The  premiums  it  received  on  business 
in  this  State  in  that  year  were  $107,323,  while  the  losses 
paid  were  $1,448,572. 

California  Oldest  Local. 

The  California  Mutual  Marine,  organized  in  1861,  and 
reincorporated  in  1864  as  the  California  Fire,  had  an  unique 
beginning  and  a  successful  career.  The  original  capital  was 
$200,000.  This  was  divided  into  twenty  shares  of  $10,000 
each,  and  was  apportioned  equally  among  twenty  men,  each 
of  whom  put  up  $1,000  in  cash  on  his  share  and  executed 
a  note  for  the  other  $9,000.  No  one  was  allowed  to  have 
a  share  unless  worth  $100,000,  and  no  one  was  allowed  to 
sell  a  share  unless  to  a  purchaser  approved  by  the  Board. 
Dr.  Samuel  Merritt  was  chosen  president,  and  C.  T.  Hop- 
kins secretary.  The  full  list  of  the  original  stockholders 
was  as  follows :  Dr.  Samuel  Merritt,  A.  J.  Pope,  W.  C.  Tal- 
bot, William  Norris,  Michael  Reese,  John  G.  Bray,  C.  W. 
Hathaway,  J.  J.  Felt,  H.  B.  Tichenor,  D.  C.  McRuer,  James 
Findla,  Levi  Stevens,  Charles  Main,  S.  C.  Bigelow,  John 
Van  Bergen,  George  H.  Howard,  H.  T.  Teschmemacher, 
James  G.  Clark,  Charles  F.  Lott  and  Pedar  Sather. 

Three  years  sufficed  to  convince  the  above  gentlemen 
that  their  organization  was  a  little  too  narrow  and  exclu- 
sive to  admit  of  the  largest  success  which  all  of  them  de- 
sired, and  so  in  March,  1864,  the  company  was  reincor- 
porated as  the  California  Insurance  Company.  The  capital 
was  paid  up  in  full,  the  par  value  of  the  shares  reduced  to 
$100,  the  restriction  against  the  sale  of  stock  eliminated 
from  the  by-laws,  and  a  department  of  fire  insurance  added. 

The  fire  business  was  discontinued  in  1867,  but  renewed 


204  The  West  the  Best  and  California  the  Best  of  the  West. 

in  1869.  In  1871  a  marine  branch  was  opened  in  New 
York,  but  discontinued  after  two  years  of  severe  losses.  It 
was  not  until  1881  that  a  fire  agency  was  opened  in  the 
Atlantic  States.  The  company  thus  fortunately  escaped  the 
big  Chicago  and  Boston  fires  of  1871  and  1872. 

The  first  cash  payment  on  account  of  capital  of  $20,000 
was  paid  up  in  February,  1861.  In  July,  1864,  earnings  of 
$80,000  were  capitalized.  This  made  the  paid-up  capital 
$100,000  at  the  time  of  reincorporation.  In  January,  1865, 
there  was  a  cash  addition  of  $40,000  to  the  capital  and 
$60,000  capitalized  from  earnings.  In  July,  1870,  an  addi- 
tion of  $50,000  new  capital  was  paid  in  and  $50,000  earn- 
ings capitalized.  This  brought  the  capital  up  to  $300,000. 
In  March,  1881,  the  capital  was  doubled  by  the  payment  of 
$300,000,  making  the  capital  $600,000.  Of  this  amount  the 
stockholders  paid  up  in  cash  $410,000,  while  the  other 
$190,000  was  from  earnings  as  capitalized  on  three  occa- 
sions. 

The  California  Insurance  Company  voluntarily  voted  to 
retire  from  business  in  May,  1892. 

In  addition  to  $190,000  given  to  stockholders  in  the  form 
of  stock  dividends,  there  was  also  paid  them  $1,432,286 
in  cash  dividends.  The  $600,000  capital  was  still  intact, 
besides  $150,000  in  surplus. 

The  total  assets  of  the  California  on  March  31,  1892, 
were  $1,105,226.  At  that  time  the  estimate  cost  of  reinsur- 
ance was  $206,125,  and  all  other  liabilities  $149,102,  leaving 
$750,000  to  be  returned  to  stockholders.  Of  this  amount, 
$410,000  was  the  actual  amount  they  had  personally  con- 
tributed to  the  capital  and  the  other  $340,000  represented 
accumulated  profit,  which  added  to  the  cash  dividends  paid, 
made  the  profit  earnings  from  all  sources  $1,772,286.  The 
company  reinsured  its  risks  in  the  Fireman's  Fund  Insur- 
ance Company. 


The  West  the  Best  and  California  the  Best  of  the  West.  205 

The  California,  before  retiring  in  1892,  had  five  presi- 
dents. Dr.  Merritt  held  that  position  for  18  months,  and 
was  succeeded  by  D.  C.  McRuer,  who  continued  in  the 
office  until  elected  to  Congress  in  1865.  Albert  Miller  then 
held  the  office  for  one  year.  He  was  succeeded  by  C.  T. 
Hopkins,  who  continued  to  serve  until  his  retirement  from 
the  underwriting  business  on  July  31,  1885.  L.  L.  Brom- 
well  followed  and  remained  until  the  company  retired  from 
business. 

In  the  final  winding  up  the  stockholders  received  all  the 
money  they  had  paid  in  on  account  of  capital  and  the  earn- 
ings that  had  been  capitalized,  and  also  a  good  bonus  divi- 
dend. The  company  was  never  disincorporated,  and  in 
1905  it  resumed  business  under  favorable  conditions  and 
met  the  heavy  reverses  of  1906  with  heroic  courage. 

The  Home  Mutual  was  organized  in  September,  1864. 
It  was  not  a  mutual,  but  a  joint  stock  concern.  Its  capital 
originally  consisted  of  the  amount  represented  in  endorsed 
notes.  It  seems  this  was  allowed  under  the  law  at  the  time 
of  its  organization.  Later,  the  law  in  that  particular  was 
amended,  and  in  1870  it  was  reincorporated  under  a  paid- 
up  capital  of  $300,000.  The  company  enjoyed  a  good  busi- 
ness from  its  inception,  and  for  many  years  paid  regular 
dividends  of  1  per  cent  every  month.  Its  stock  com- 
manded a  high  price. 

The  Fireman's  Fund  Insurance  Company  at  first  pur- 
chased some  of  the  stock  of  the  Home  Mutual  as  an  invest- 
ment for  its  surplus  cash  in  the  same  way  and  for  the  same 
purpose  as  it  purchased  shares  in  other  corporations.  Event- 
ually it  secured  control  of  all  its  3,000  shares  at  a  cost  of 
about  $600,000.  The  company  continued  in  business  as  an 
independent  organization.  It  purchased  the  building  for- 
merly occupied  by  the  California  Company  at  a  cost  of 
$150,000,  and  moved  its  business  to  the  same.     After  the 


206  The  West  the  Best  and  California  the  Best  of  the  West. 

fire  of  1906  its  risks  were  cared  for  by  the  Fireman's  Fund, 
but  the  Home  Mutual  is  still  a  corporation,  though  it  has 
written  no  risks  since  1906. 

The  local  companies  in  active  existence  at  the  close  of  1889 
were  the  Fireman's  Fund,  Home  Mutual,  Oakland  Home, 
State  Investment  and  Sun,  with  a  combined  capital  of 
$2,200,000. 

The  Sun  Insurance  Company,  with  a  capital  of  $300,000, 
organized  in  1881,  was  the  last  fire  and  marine  business 
to  come  into  existence  in  San  Francisco.  For  the  past 
thirty  years  no  San  Franciscan  has  had  the  courage  to 
organize  a  company  of  that  kind.  So  far  as  can  be  re- 
called, there  has  been  only  one  joint  stock  fire  and  marine 
insurance  company  organized  in  any  part  of  the  State  for 
the  past  twenty-four  years.  The  exception  is  the  Los  An- 
geles Fire  Insurance  Company,  which  was  incorporated  in 
April,  1910,  and  began  business  in  the  following  August. 
This  company  takes  only  fire  risks.  At  the  close  of  1911 
it  reported  a  paid-up  capital  of  $209,000.  Net  risks  written 
in  1911  throughout  the  State,  $1,429,232;  net  losses  paid, 
$12,596;  net  losses  incurred,  $8,528;  income,  $35,800;  dis- 
bursements,  $47,000;   admitted   assets,   $304,800. 

At  the  close  of  1891  there  were  five  joint  stock  fire  and 
marine  insurance  companies  of  local  origin  in  operation  in 
San  Francisco  and  one  in  Oakland.  At  the  close  of  1911 
only  three  of  these  six  were  in  existence,  and  only  two  of 
those  three  were  transacting  business.  The  three  that  re- 
tired during  the  interval  were  the  State  Investment  and 
Sun  of  San  Francisco  and  the  Oakland  Home  of  Oakland. 
The  last  annual  report  of  the  State  Investment  was  for 
1892,  and  showed  a  paid-up  capital  of  $400,000,  assets  of 
$623,400,  income  for  the  year  $774,300,  including  $730,600 
from  premiums;  expenditures  $768,700,  including  $455,700 
for  losses.     In  the   following  year,   because  it  refused  to 


The  West  the  Best  and  California  the  Best  of  the  West.  207 

restore    impaired    capital    to    the    extent    of    $247,400,    its 
license  to  do  business  was  withdrawn  on  May  10,  1893. 

At  the  close  of  1892,  the  Sun  reported  a  paid-up  capital 
of  $300,000  and  assets  of  $532,400.  Its  income  for  that 
year  was  $322,000,  including  $203,000  from  premiums;  and 
its  expenditures,  $344,600,  including  $194,000  for  losses. 
The  company  retired  from  business  in  1895,  reinsuring  its 
risks  in  the  Fireman's  Fund  Insurance  Company. 

The  Oakland  Home  had  a  paid-up  capital  of  $200,000  at 
the  close  of  1892  and  assets  of  $583,300.  Its  income  for 
that  year  was  $636,666,  including  $612,600  from  premiums, 
and  its  expenditures,  $618,700,  including  $366,400  for  losses 
paid.  It  retired  from  business  in  1894,  reinsuring  its  risks 
in  the  Fireman's  Fund  Insurance  Company. 

The  only  joint  stock  fire  and  marine  insurance  com- 
panies of  California  origin  in  business  in  1911  were  the 
California  and  Fireman's  Fund  of  San  Francisco  and  the 
Los  Angeles  of  Los  Angeles.  These  companies  wrote  fire 
risks  to  the  extent  of  $35,051,000  and  marine  risks  to  the 
amount  of  $82,474,400  in  1911.  The  premiums  received 
were  $867,800  from  fire  risks  and  $479,500  from  marine. 
Losses  paid  were  $259,900  on  fire  and  $255,300  on  marine. 
Risks  in  force  at  the  close  of  the  year  were  $67,679,200 
fire,  on  which  the  premiums  were  $1,189,300,  and  $11,033,- 
300  marine,  on  which  the  premiums  were  $303,000. 

At  the  close  of  1911  the  paid-up  capital  of  the  California 
was  $400,000  and  admitted  assets  $1,320,500. 

The  Fireman's  Fund  reported  a  paid-up  capital  of 
$1,500,000  and  admitted  assets  of  $8,649,600  at  the  same  time. 

The  income  of  the  California  for  1911  was  $823,300; 
disbursements,  $693,900.  Income  of  Fireman's  Fund  for 
the  same  year,  $5,819,100;  disbursements,  $5,264,700. 


208  The  West  the  Best  and  California  the  Best  of  the  West. 

County  Mutual  Fire  Insurance  Companies. 

The  elimination  of  so  many  fire  insurance  companies 
prior  to  1898  undoubtedly  led  to  a  new  form  of  local  insur- 
ance protection  against  fire  throughout  the  interior  of  the 
State  under  the  name  of  County  Fire  Mutual  Insurance 
Companies.  Four  of  such  companies  were  incorporated  in 
1898  in  as  many  different  counties  outside  of  San  Fran- 
cisco, three  more  in  1899,  one  in  1900,  two  in  1902,  three 
in  1906,  three  in  1907,  one  in  1909  and  one  in  1911. 

These  18  companies,  representing  18  of  the  58  counties 
of  California,  wrote  risks  to  the  amount  of  $8,785,680  in 
1911,  for  which  the  premiums  received  were  $66,103,  while 
the  losses  paid  during  the  same  year  amounted  to  $31,853. 

During  the  year  1911  there  were  151  joint  stock  and 
mutual  fire  and  marine  insurance  companies  authorized  to 
do  business  in  California.  The  field  has  always  been  an 
attractive  one  to  these  outside  companies,  which  numbered 
130  in  1911.  The  number  authorized  to  transact  fire  busi- 
ness in  that  year  was  114,  and  the  risks  written  amounted 
to  $966,664,270,  while  the  premiums  received  were  $16,154,- 
900.  The  total  of  risks  shows  a  considerable  decrease  from 
the  previous  year.  The  losses  paid  were  $4,604,200,  a 
decrease  of  $1,409,200. 

These  figures  show  that  3.6  per  cent  of  the  fire  business 
was  written  by  California  companies  with  a  loss  ratio  of 
29.9  per  cent;  63.6  per  cent  by  companies  of  other  States 
with  a  loss  ratio  of  28.5  per  cent;  and  32.8  per  cent  by 
companies  of  foreign  countries,  with  a  loss  ratio  of  28  per 
cent. 

Ratio  of  Fire  Losses  to  Premiums. 

From  1884  to  1911,  both  years  inclusive,  premiums  re- 
ceived on  fire  insurance  effected  in  California  amounted  to 
$231,265,439,  while  the  losses  paid  in  the  same  interval 
were   $236,221,012.     The   comparison   shows   a   net   loss   of 


The  West  the  Best  and  California  the  Best  of  the  West.  209 

$5,000,000  on  this  particular  feature  of  the  insurance  busi- 
ness. 

The  one  great  disturbing  factor  to  underwriting  in  Cali- 
fornia in  that  interval  was  the  heavy  losses  incurred  in  San 
Francisco  and  other  parts  of  the  State  in  1906.  Usually 
the  ratio  of  losses  to  premiums  in  the  State  has  varied  from 
28  to  44  per  cent.  In  the  past  37  years  the  ratio  has  been 
under  30  per  cent  four  times.  The  lowest  level  was  26.3 
per  cent  in  1878.  It  has  been  from  30  to  40  per  cent  in 
nineteen  years.  It  has  been  from  41  to  45  per  cent  six 
times;  from  50  to  55  per  cent  six  times.  In  1895  it  was 
over  60  per  cent,  while  in  the  following  year  it  was  69  per 
cent.  Those  two  years  were  the  worst  in  twenty  years. 
The  fire  insurance  business  can  withstand  such  misfortunes 
where  they  do  not  occur  any  oftener  than  that. 

But  the  unexpected  and  unprecedented  event  of  1906 
upset  all  schedules  of  averages  of  fire  losses  to  fire  premi- 
ums. The  premiums  received  in  that  year  were  $13,368,- 
351,  and  the  losses  paid  $146,306,377,  thus  raising  the  ratio 
of  losses  to  1,094  per  cent  of  the  premiums.  The  premiums 
received  in  1906  were  $3,000,000  in  excess  of  the  previous 
year,  which  was  also  a  record  year.  In  1907  there  was  a 
further  increase  of  $2,900,000  over  1906.  The  average  for 
the  following  three  years  was  about  $15,000,000.  In  1911 
the  total  nearly  reached  the  record  total  of  1907. 

Losses  by  the  First  Five  Big  Fires. 

The  five  great  fires  that  occurred  in  San  Francisco  dur- 
ing the  first  two  years  of  its  occupancy  by  the  goldseekers 
were  severe  trials  to  the  limited  number  of  residents,  as  the 
first  directory  published  in  September,  1850,  contained  only 
2,500  names.  But  it  was  a  brave  crowd  that  met  and  sur- 
mounted these  disasters. 

According   to   Hittell's  History   of   San   Francisco,   the 


210  The  West  the  Best  and  Calif o-mia  the  Best  of  the  West. 

first  of  these  great  fires  occurred  on  December  24,  1849. 
It  was  the  first  Christmas  greeting  to  the  newcomers,  warm 
and  costly.  This  fire  destroyed  all  the  buildings  on 
Kearny,  between  Washington  and  Clay,  which  were  the 
most  expensive  erected  up  to  that  time,  including  the 
Parker  House,  a  two-story  frame,  for  hotel  guests  and 
gamblers.     The  loss  by  this  fire  was  $1,000,000. 

The  second  great  fire  was  on  May  4,  1850,  when  three 
blocks  were  destroyed,  occupied  largely  by  merchants. 
Loss,  $3,000,000. 

The  third  great  fire  started  on  June  14,  1850,  and  burned 
everything  from  Clay  to  California  streets  and  from 
Kearny  street  to  the  waterfront.     Loss,  $3,000,000. 

The  fourth  great  fire  began  on  the  night  of  May  3,  1851, 
just  one  year  from  the  second  big  fire.  This  was  the  most 
extensive  as  well  as  the  most  expensive  conflagration  in 
the  city  up  to  that  date,  and  destroyed  sixteen  blocks  in 
the  business  section,  including  the  Custom  House  on  the 
northwest  corner  of  California  and  Montgomery.  The  loss 
by  this  fire  was  $7,000,000. 

The  fifth  great  fire  of  that  early  period  was  on  June  22, 
1851,  when  eleven  full  blocks  were  burned,  with  a  loss  of 
$2,000,000. 

A  loss  of  $16,000,000  in  two  years  in  that  pioneer  period 
of  the  city  developed  deeds  of  courage  and  self  reliance 
which  are  still  prominent  features  of  all  true  Californians. 

The  Big  Fire  of  the  Century  and  Comitry. 

These  fires  in  the  early  years  of  California  were  consid- 
ered great  hardships  to  the  comparatively  few  involved.  In 
subsequent  years  San  Francisco  was  visited  with  similar 
disasters  of  more  or  less  magnitude. 

But  the  fire  of  April,  1906,  involved  a  greater  loss,  prob- 
ably, than  all  the  preceding  ones  combined. 

City   Engineer   Woodward,   in   his  report   of  that   fire, 


The  West  the  Best  and  California  the  Best  of  the  West.  211 

placed  the  burned  area  at  2,593  acres,  equal  to  a  little  over 
four  square  miles.  This  area  included  the  destruction  of 
490  blocks  of  buildings,  together  with  the  partial  destruc- 
tion of  32  other  blocks,  all  in  the  business  portion  of  the 
city. 

Scores  of  Eastern  and  foreign  fire  underwriters  were 
involved  in  the  disaster.  The  property  destroyed  has  been 
estimated  at  from  $450,000,000  to  $500,000,000.  It  is  be- 
lieved the  latter  total  is  nearest  to  the  actual  fact. 

More  than  one  hundred  adjusters  were  kept  busy  for 
several  months  in  ascertaining  the  liabilities  of  the  insurers. 
Honorable  dealing  was  put  to  a  severe  test  in  many  cases. 
Some  of  the  companies  stood  the  test,  and  others  failed, 
though  in  some  cases  not  altogether  voluntarily,  but  from 
their  inability  to  pay  in  full.  Insurers  had  to  prove  their 
losses  beyond  the  shadow  of  a  doubt  before  they  would  be 
allowed.  These  proved  claims  amounted  to  $225,000,000 
in  the  aggregate,  and  while  many  of  the  outside  companies 
paid  in  full  on  these  approved  claims,  some  of  the  insured 
did  not  recover  as  much  as  they  thought  was  due  them. 

How  the  California  and  Fireman's  Fund  Met  It. 

The  three  local  companies  involved  in  this  disaster  were 
the  California,  Fireman's  Fund  and  Home.  The  Fireman's 
Fund  owned  the  Home,  and  joint  policies  were  issued  under 
a  third  corporation  known  as  the  Pacific  Underwriters. 
While,  therefore,  local  underwriting  was  distributed  among 
these  four  corporations,  the  liabilities  fell  upon  two,  namely, 
the  California  acting  for  itself  alone,  and  the  Fireman's 
Fund,  responsible  for  its  own  corporate  business  and  also 
that  of  the  Home  Fire  and  the  Pacific  Underwriters. 

The  California  had  only  resumed  business  in  1905.  Its 
high  standing  when  previously  in  business,  and  its  honor- 
able retirement  from  active  existence  in  1892,  made  it  easy 
to  secure  a  new  clientage,  and  at  the  time  of  the  disaster 


212  The  West  the  Best  and  California  the  Best  of  the  West. 

in  April,  1906,  its  outstanding  risks  were  quite  large.  Of 
course,  its  losses  by  that  event  were  correspondingly  heavy. 
But  its  name  and  reputation  were  two  good  assets,  which 
the  stockholders  could  not  afford  to  voluntarily  surrender 
even  under  such  a  heavy  burden  as  this  severe  trial  had 
imposed  upon  them.  With  the  spirit  of  true  and  tried  Cali- 
fornians,  they  met  their  reverses  by  an  assessment  upon 
their  own  paid-up  stock.  This  is  now  seen  to  have  been  a 
good  investment.  It  has  already  resulted  in  satisfactory 
returns. 

The  buildings  owned  and  occupied  by  the  Fireman's 
Fund  and  Home  Fire  were  destroyed  in  that  conflagration, 
together  with  valuable  records. 

At  the  time  of  this  calamity  the  Fireman's  Fund  was 
doing  business  in  all  parts  of  the  country.  To  protect  the 
policies  issued  on  property  in  other  States,  the  first  thing 
to  do  was  to  form  a  new  organization  to  assume  these  out- 
side obligations,  and  this  was  done.  The  next  thing  was  to 
care  for  the  local  sufferers.  An  assessment  of  $3,000,000, 
or  $300  per  share,  was  levied  for  that  purpose.  Because 
of  the  heavy  losses  sustained  by  many  of  the  stockholders 
and  of  the  losses  on  the  large  investments  in  the  stocks  of 
local  corporations,  all  of  which  had  suffered  in  the  dis- 
aster, only  $1,900,000  of  the  assessment  was  collected  in 
cash. 

The  gross  claims  of  the  companies  involved  were  $11,- 
000,000,  together  with  $400,000  for  return  premium  claims 
on  the  Home  Fire.  The  supposed  resources  in  sight  were 
put  down  at  $7,000,000,  but  this  amount  was  not  fully 
realized. 

The  proved  claims  were  settled  at  50  per  cent  on  the 
dollar  in  cash  and  50  per  cent  in  capital  stock  rated  at 
$500  per  share,  the  par  value  of  which  was  $100  per  share. 
As  at  the  time  of  the  fire  the  stock  of  the  company  of  the 
same  par  value  Avas  selling  at  $450,  it  was  assumed  that 


The  West  the  Best  and  California  the  Best  of  the  West.  213 

the  new  stock  given  in  payment  of  losses  would  eventually 
be  worth  $500,  and  that  would  be  equivalent  to  paying  the 
losses  dollar  for  dollar.  The  stock  has  already  commanded 
$245  per  share. 


BANKING  BUSINESS  IN  CALIFORNIA 


Banking  and  business  go  hand  in  hand.  They  are  in- 
separable. Whether  banking  makes  business  or  business 
makes  banking  is  a  problem  that  has  never  been  satisfac- 
torily solved,  and  no  attempt  will  be  made  in  this  connec- 
tion to  answer  that  question.  There  were  banks  in  San 
Francisco  in  January,  1849.  As  a  merchant  in  Sacramento 
in  1849,  the  late  D.  0.  Mills  did  some  banking  in  connec- 
tion with  the  selling  of  goods,  and  in  1850  he  opened  a 
private  bank  in  that  city,  which  has  been  in  continuous 
existence  since,  and  is  therefore  the  oldest  bank  in  the 
State.  It  subsequently  incorporated  under  the  laws  of  the 
State,  and  later  went  into  the  national  system  under  the 
name  of  the  National  Bank  of  D.  0.  Mills  &  Co.  Mr.  Mills 
was  first  a  merchant  and  then  a  banker,  and  a  high  type 
business  man  generally,  both  in  California  and  in  New 
York. 

Private  banking  was  the  rule  in  California  in  the  pioneer 
years.  As  late  as  1906  there  were  34  private  banks  in 
operation  in  the  State.  Three  years  later  there  were  only 
15.  Under  the  law  which  went  into  operation  on  July  1, 
1906,  no  distinction  has  been  made  between  private  and 
incorporated  banks,  though  a  few  of  the  former  are  still  in 
operation. 

Banking  in  California  has  undergone  many  changes 
since  1849.  Generally  these  evolutions  have  been  for  the 
good  of  the  service,  and  that  means  to  higher  and  more 
perfect  standards  of  sound  banking. 


214  The  West  the  Best  and  California  the  Best  of  the  West. 

Official  Supervision — Cost  Under  Commissioners. 

Prior  to  1878,  the  banking  business  of  California  was 
without  State  supervision  of  any  kind.  For  the  next 
thirty-one  years  it  was  under  a  State  Board  of  Bank  Com- 
missioners. Since  July  1,  1909,  it  has  been  under  the 
supervision  of  a  Bank  Superintendent,  with  full  power  to 
appoint  his  own  deputies  and  clerks.  The  former  Commis- 
sioners were  appointed  by  the  Governor,  and  the  Superin- 
tendent of  Banks  under  the  new  law  gets  his  appointment 
from  the  same  source. 

The  expense  of  the  service  under  both  forms  of  super- 
vision has  been  borne  entirely  by  the  banks.  It  is  one  of 
the  very  few  of  the  State  Commissions,  if  not  the  only  one, 
that  is  self  sustaining.  The  comical  feature  of  this  situa- 
tion lies  in  the  fact  that  the  banks  pay  for  their  own  police 
protection,  but  have  no  voice  in  the  selection  of  those 
chosen  to  perform  the  service. 

Three  Commissioners  constituted  the  Board  for  the 
first  twenty-five  years.  The  cost  of  the  service  for  the 
first  year  was  fixed  at  $13,400,  and  for  the  first  nine  years 
it  was  kept  pretty  close  to  that  total.  Under  increased 
salaries  in  1887  the  limit  was  raised  to  $18,600  per  annum. 

In  1903,  the  number  of  Commissioners  was  increased  to 
four,  and  other  expenses  were  also  added,  which  brought 
the  outlay  to  $29,200  per  annum. 

The  writer  estimates  the  cost  of  the  supervision  of  the 
State  banks  by  the  Commissioners  for  those  thirty-one  years 
of  service  was  $540,000,  every  dollar  of  which  was  paid  by 
the  banks. 

New  Form — Increased  Cost. 

The  law  which  went  into  operation  on  July  1,  1909, 
provides  for  an  expenditure  not  exceeding  $75,000  per 
annum  for  the  cost  of  the  service,  which  includes  $10,000 
for  the  Superintendent  of  Banks. 


The  West  the  Best  and  California  the  Best  of  the  West.  215 

According  to  the  report  of  the  Superintendent,  the  cost 
of  the  service  for  the  third  year  ending  June  30,  1912,  was 
$74,903,  of  which  $60,150  was  for  salaries,  $4,094  for  trav- 
eling expenses,  $3,645  for  rent,  $3,008  for  printing,  $1,129 
for  furniture  and  books,  $548  for  stationery  and  supplies, 
and  $2,329  for  general  expenses. 

The  law  provides  for  semi-annual  examinations  for  every 
commercial  bank  and  annual  examinations  for  every  sav- 
ings bank.  This  means  770  examinations  annually,  124  of 
which  applied  to  the  parent  bank  and  branch  offices,  neces- 
sitating two  examiners  instead  of  one.  In  this  connection 
the  report  of  the  Superintendent  says:  "It  is  imperative, 
if  the  work  of  the  department  is  to  be  .properly  carried  on, 
that  a  fund  of  not  less  than  one  hundred  thousand  dollars 
be  provided,  and  that  all  receipts  by  the  department  be  also 
made  available  for  its  use." 

The  Superintendent  also  recommends  that  a  per  diem 
charge  be  authorized  to  be  paid  by  such  banking  institu- 
tions as  require  special  or  unusual  attention  from  the  de- 
partment. He  also  thinks  that  an  audit  of  accounts  by 
competent  auditors  should  be  required  by  law  from  every 
bank  under  State  jurisdiction,  the  expense  of  such  service 
to  be  paid  by  the  banks. 

Departmental  Banking. 

The  present  banking  law  was  framed  after  much  careful 
investigation  of  the  best  systems  in  force  in  other  States, 
with  such  modifications  as  banking  experience  in  California 
could  suggest  to  meet  the  wants  of  all  sections  and  all 
possible   conditions. 

The  law  provides  for  departmental  as  well  as  separate 
forms  of  banking,  and  clothes  the  Superintendent  with  full 
power  to  enforce  its  provisions,  holding  him  responsible 
for  a  faithful  performance  of  his  duties. 

Parties  desiring  to   go  into  the   banking  business  can 


216  The  West  the  Best  and  California  the  Best  of  the  West. 

elect  any  one  of  three  forms,  as  commercial,  savings  or 
trust,  or  can  combine  two  or  all  three  under  the  same  roof 
and  the  same  management,  provided  the  accounts  of  each 
are  kept  separately  and  as  distinct  one  from  the  other  as 
if  the  three  departments  were  miles  apart  and  under 
entirely  different  managements. 

Ample  provisions  are  made  for  each  department,  cover- 
ing every  detail  of  the  business.  Provision  is  made  for  the 
establishment  of  branch  banks. 

Departmental  banks,  whether  the  combination  is  savings 
and  trust,  commercial  and  trust,  or  savings,  commercial 
and  trust,  must  have  a  paid-up  capital  of  $225,000,  but  a 
commercial  and  savings  business  may  be  conducted  with  a 
paid-up  capital  of  $25,000.  Paid-up  capital  and  surplus 
must  at  all  times  be  equal  to  10  per  cent  of  the  deposit 
liabilities,  but  no  savings  bank  shall  be  required  to  have  a 
capital  and  surplus  in  excess  of  $1,000,000. 

Despite  the  unusual  care  exercised  in  framing  the  pres- 
ent Bank  Act,  the  Superintendent  for  the  third  year  of  its 
operation  has  found  many  of  its  provisions  which  he  thinks 
can  be  improved,  and  for  the  accomplishment  of  which  he 
does  not  hesitate  to  recommend  legislation. 

It  is  a  repetition  of  the  old  illustration  of  the  difficulty 
of  harmonizing  theory  and  practice.  It  is  comparatively 
easy  to  propound  plausible  theories  for  the  conduct  of  any 
kind  of  business.  It  is  quite  another  thing  to  apply  them 
literally  in  practice  with  success  in  the  highest  and  best 
sense.     The  Superintendent  says: 

"These  defects  in  the  banking  laws  of  this  State  are 
apparent  both  from  the  point  of  view  of  this  department 
and  of  the  safe  banker.  They  suggest  on  the  one  hand  the 
need  of  a  more  effective  supervision  of  banking  institutions, 
and  on  the  other  greater  elasticity  of  banking  operations 
thoroughly  within  the  limitations  of  absolute  safety." 

This  statement  is  followed  with  a  somewhat  lengthy  list 


The  West  the  Best  and  California  the  Best  of  the  West.  217 

of  suggestions  and  recommendations  for  the  improvement 
of  the  Bank  Act  by  the  Legislature. 

In  addition  to  State  supervision,  the  Clearing  House 
banks  in  San  Francisco  and  Los  Angeles  employ  their  own 
special  examiners,  which  cover  all  the  member  banks, 
whether  State  or  National.  It  would  be  well  if  all  Clearing 
House  banks  in  every  part  of  the  State  pursued  the  same 
course. 

First  General  Bank  Statement. 

The  writer  made  the  first  compilation  of  the  condition 
of  all  the  known  incorporated  State  banks  in  the  State 
at  the  close  of  1876.  There  were  91  banks  in  operation  at 
that  time,  with  a  combined  capital  and  surplus  of  $49,206,- 
000,  individual  deposits  of  $119,835,000  and  aggregate  re- 
sources of  $182,460,000. 

The  State  was  experiencing  a  series  of  bank  troubles 
at  that  time  which  continued  for  some  years  afterwards, 
during  which  there  was  a  considerable  shrinkage  in  bank 
resources. 

Statements  of  private  banks  were  first  incorporated  in 
these  reports  in  January,  1888.  At  that  time  158  State 
banks  reported  a  paid-up  capital  and  surplus  of  $58,298,- 
000;  individual  deposits  of  $133,376,000,  and  resources  of 
$201,393,000. 

Ten  years  later  252  State  banks  had  $60,457,000  paid-up 
capital  and  surplus,  $195,075,000  in  individual  deposits  and 
$267,912,000  in  aggregate  resources.  A  country-wide  bank 
panic  occurred  during  that  decade,  and  the  business  had 
not  entirely  recovered  from  the  effects  of  that  event.  Just 
previous  to  that  panic  these  banks  reported  a  capital  and 
surplus  of  $79,459,000  and  resources  of  $286,134,000. 

In  1908  the  reports  from  500  State  banks  showed  a 
paid-up  capital  and  surplus  of  $107,055,000,  individual  de- 
posits of  $437,405,000  and  resources  of  $587,795,000. 

The  reports  of  the   State  banks  for  August   14,   1912, 


218  The  West  the  Best  and  California  the  Best  of  the  West. 

shows  523  banks  in  operation,  inclusive  of  63  branches,  with 
a  paid-up  capital  and  surplus  of  $97,832,000,  individual 
deposits  of  $547,232,800  and  resources  of  $676,068,600. 

National  Bank  System  Introduced. 

The  first  national  bank  opened  for  business  in  California 
in  1871,  and  it  has  been  in  continuous  existence  ever  since. 
This  was  the  First  National  Bank  of  San  Francisco. 

Ten  years  later,  10  of  these  banks  reported  their  capital 
and  surplus  at  $3,675,000,  individual  deposits  $3,873,000, 
resources  $9,681,000. 

At  the  end  of  the  next  decade  37  of  these  banks  re- 
ported capital  and  surplus  of  $12,045,000,  individual  de- 
posits of  $18,490,000,  and  resources  of  $33,475,000. 

At  the  end  of  the  third  decade,  41  of  the  banks  reported 
capital  and  surplus  of  $15,015,000,  individual  deposits  of 
$36,427,000,  and  resources  of  $67,125,000. 

Since  1902  the  multiplication  of  national  banks  in  Cali- 
fornia has  been  much  more  rapid.  Starting  with  46  in  that 
year,  the  average  gain  for  the  next  three  years  was  11 
per  annum,  against  a  maximum  of  7  for  every  preceding 
year,  except  1887,  when  the  gain  was  10.  From  79  of 
these  banks  in  operation  in  the  State  in  1905,  the  number 
reporting  the  next  year  was  104,  a  net  gain  of  25  in  a 
single  year.  In  the  following  four  years  the  net  gains 
were  19,  9,  13  and  31,  respectively,  or  a  total  gain  of  72 
in  that  interval. 

In  the  past  two  years  there  has  been  a  further  gain  of 
55  banks,  bringing  the  number  up  to  231  on  the  4th  of 
September,  1912.  On  that  date  these  banks  reported  capital 
and  surplus  of  $88,649,500,  individual  deposits  of  $225,- 
002,300,  and  resources  of  $500,466,700. 

The  number  of  banks  in  California  under  the  State  and 
national  systems  in  1872  was  71,  with  a  paid  capital  and 
surplus   of  $41,593,000,   individual   deposits   of  $72,064,000 


The  West  the  Best  and  California  the  Best  of  the  West.  219 

and  aggregate  resources  of  $114,717,000.  That  is  as  far 
back  as  there  are  reliable  statistics  of  the  banking  busi- 
ness in  the  State  as  a  whole. 

There  was  not  much  increase  between  1872  and  1882, 
because  of  the  bank  troubles  which  intervened.  In  the 
last-named  year  87  banks  reported  capital  and  surplus  of 
$39,376,000,  individual  deposits  of  $92,557,000,  and  aggre- 
gate resources  of  $140,882,000. 

Ten  years  later  this  branch  of  business  was  on  the  top 
wave  of  prosperity,  having  fully  recovered  from  the  de- 
pression existing  in  the  previous  decade.  The  year  1892 
was  a  prosperous  one  throughout  the  country.  In  that 
year  255  banks  were  in  operation  in  the  State,  with  a  paid- 
up  capital  and  surplus  of  $87,805,000,  individual  deposits  of 
$196,599,000  and  aggregate  resources  of  $298,133,000.  These 
were  the  largest  totals  in  the  history  of  the  State  to  that 
date. 

The  great  bank  panic  of  1893  caused  a  considerable 
shrinkage  of  bank  capital  throughout  the  United  States, 
and  California  suffered  with  the  other  States.  The  303 
banks  in  operation  in  the  State  in  1902  reported  paid-up 
capital  and  surplus  of  $82,143,000,  individual  deposits  of 
$335,378,000,  and  aggregate  resources  of  $452,231,000. 

Banks  Under  State  and  National  Authority. 

During  the  last  decade  the  banks  in  California  have 
enjoyed  a  greater  degree  of  prosperity,  judging  from  sur- 
face conditions,  than  for  any  previous  one.  The  expansion 
has  been  quite  phenomenal. 

The  reports  from  the  State  banks  in  1912  are  for 
August  14th  and  from  the  National  banks  September  4th. 
A  combination  of  the  reports  for  those  dates  shows  the 
operation  of  754  banks  in  California,  with  a  paid-up  capital 
and  surplus  of  $186,471,400,  individual  deposits  of  $872,- 
237,100,  and  aggregate  resources  of  $1,176,535,300. 


220  The  West  the  Best  and  California  the  Best  of  the  West. 

During  this  last  decade  there  has  been  much  more  than 
a  doubling  up  all  round.  An  increase  of  100  per  cent  on 
the  large  totals  of  1902  would  have  been  cause  for  much 
congratulation.  But  the  increase  has  considerably  im- 
proved on  that  figure. 

From  303  banks  in  active  operation  in  1902,  the  number 
has  been  increased  to  754  in  1912.  From  a  paid-up  capital 
and  surplus  of  $82,143,000  in  1902,  the  total  has  been 
raised  to  $186,471,400.  In  the  same  interval  the  individual 
deposits  have  been  increased  from  $335,378,000  to  $872,235,- 
100,  and  the  aggregate  resources  from  $452,231,000  to 
$1,176,535,300. 

If  the  decade  just  ahead  shows  a  corresponding  degree 
of  progress  and  prosperity,  the  expansion  will  mean  much 
to  the  State,  really  more  than  can  be  realized. 

San  Francisco's  Prominence  in  Banking. 

San  Francisco  has  played  no  inconsiderable  part  in  this 
display  of  banking  expansion  in  the  State  as  a  whole. 

It  is  quite  natural  that  this  should  be  so,  because  of  its 
large  population  and  its  prominence  as  the  metropolis  of 
the  Pacific  Coast. 

There  have  been  years  when  there  were  more  banks  in 
San  Francisco  than  now,  but  there  has  never  been  a  year 
when  its  banking  resources  were  so  large. 

In  the  last  report  of  the  Superintendent  of  Banks,  San 
Francisco  is  credited  with  only  37  banks,  while  Los  Ange- 
les is  given  credit  for  38.  But,  when  it  comes  to  further 
comparisons,  the  odds  are  largely  in  favor  of  San  Fran- 
cisco, both  from  the  standpoint  of  State  banks  as  well  as 
National  banks. 

The  reports  of  the  State  banks  of  San  Francisco  for 
August  14,  1912,  show  aggregate  resources  of  $264,394,400, 
against  $123,760,000  for  Los  Angeles. 


The  West  the  Best  and  California  the  Best  of  the  West.  221 

There  are  9  National  banks  in  each  of  these  cities.  The 
resources  of  these  banks  in  San  Francisco  on  September  4, 
1912,  were  $240,848,000,  and  in  Los  Angeles  $80,037,200. 

On  the  above  dates  San  Francisco  controlled  nearly  40 
per  cent  of  all  the  State  bank  resources  and  nearly  50 
per  cent  of  all  the  resources  of  the  National  banks  in  the 
State.  Of  the  combined  resources  of  all  the  banks  in  the 
State  on  the  above  dates  the  San  Francisco  banks  had  43 
per  cent. 

These  comparisons  between  San  Francisco  and  Los  An- 
geles, and  between  San  Francisco  and  the  remainder  of  the 
State,  including  Los  Angeles,  are  not  made  in  any  spirit 
of  boasting,  or  with  any  desire  to  belittle  other  sections. 

San  Francisco's  prosperity  is  the  best  evidence  that  can 
be  cited  of  the  State's  prosperity.  No  section  of  the  State 
can  prosper  without  indirectly  contributing  to  the  pros- 
perity of  every  other  section.  The  prosperity  of  any  single 
industry  in  which  the  State  is  interested  helps  every  other 
legitimate  industry. 

Those  who  take  a  narrower  view  than  that  of  all 
forms  of  business  and  industrial  life,  take  a  false  view,  and 
inflict  a  personal  injury  to  themselves. 

It  is  fortunate  for  California  as  a  whole  that  it  has  such 
munificent  banking  resources.  These  resources  are  not  aU 
of  her  own  creation.  The  favorable  conditions  of  business 
here  have  attracted  much  banking  capital  from  other  parts 
of  the  country,  as  well  as  from  other  parts  of  the  world. 

The  great  distance  of  California  from  the  wealthy  finan- 
cial centres  of  the  East  must  lead  every  citizen  to  rejoice 
in  and  fully  appreciate  the  comfortable  financial  conditions 
that  make  it  possible  to  handle  the  enterprises  and  prod- 
ucts of  the  State  so  easily  and  on  such  favorable  terms. 


y 


:l5io(qQ 


02  9 


-U- 


# 


(o(x> 


:;1>^ 


THE  UNIVERSITY  OF  CALIFORNIA  LIBRARY 


1 

I 

1 

'   i 

■,-. 

'    ,■■ . 
.     .. 

1 

■  'is 

f'.H 

